Which statement shows revenue and expenses over a period?

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Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your exam!

Multiple Choice

Which statement shows revenue and expenses over a period?

Explanation:
An income statement is the financial report that shows what the business earned (revenue) and what it spent (expenses) over a specific period, ending with net profit or loss. This period-based view is exactly what the question asks for, because it focuses on revenue and expenses within a time frame. In contrast, a cash flow statement tracks actual cash movements, not all revenues and expenses. A balance sheet shows assets, liabilities, and equity at a single point in time. A trial balance lists ledger balances to check that debits equal credits.

An income statement is the financial report that shows what the business earned (revenue) and what it spent (expenses) over a specific period, ending with net profit or loss. This period-based view is exactly what the question asks for, because it focuses on revenue and expenses within a time frame.

In contrast, a cash flow statement tracks actual cash movements, not all revenues and expenses. A balance sheet shows assets, liabilities, and equity at a single point in time. A trial balance lists ledger balances to check that debits equal credits.

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