Question

Which financial statement summarizes a business’s incomes and expenses?

Answer 1

Answer:

Income statement.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The income statement is a financial statement that summarizes a business’s incomes and expenses.

Hence, the main purpose of the income statement is to present your business’s earnings for a given period as it summarizes your incomes and expenses.