which financial statement reports the company’s revenues and selling costs over a period of time?
Which financial statement reports the company’s revenues and selling costs over a period of time?
Answer:
The financial statement that reports a company’s revenues and selling costs over a period of time is the Income Statement, also known as the Profit and Loss Statement. The Income Statement provides a summary of a company’s revenues, expenses, gains, and losses during a specific period, typically monthly, quarterly, or annually.
In the Income Statement, revenues from sales and the expenses associated with generating those revenues are reported. Selling costs, such as advertising expenses, marketing expenses, and sales commissions, are captured under expenses. By subtracting the total expenses from the total revenues, the statement calculates the company’s net income or net loss for the period.
This statement is crucial for investors, analysts, and other stakeholders to assess the company’s profitability and performance over time. It helps in evaluating the efficiency of the company’s operations and in making informed decisions regarding financial health and future prospects.