Which financial statement provides a snapshot of a company's revenues and expenses over a specific period?

The income statement provides a snapshot of a company's revenues and expenses over a specific period, typically quarterly or annually. This financial statement highlights how much money the company earned (revenues) and the costs incurred to generate those revenues (expenses), ultimately leading to the net profit or loss for that period. It is essential for assessing the company's operational performance, helping stakeholders understand how well the company is generating profit relative to its costs.

In contrast, the balance sheet presents a company's financial position at a specific point in time, detailing assets, liabilities, and shareholder equity. The statement of cash flows outlines the cash inflows and outflows from operating, investing, and financing activities. The equity statement, or statement of changes in equity, tracks changes in equity from transactions such as stock issuance or dividends. Each of these statements serves different purposes in financial reporting, with the income statement specifically focusing on a company's profitability over time.