Which financial statement shows a company's revenues and expenses over a period?

The income statement provides a detailed account of a company's revenues and expenses over a specific period, typically a month, a quarter, or a year. This financial statement is crucial for assessing the profitability of a business, as it not only lists total revenues generated during the period but also outlines all expenses incurred, leading to the calculation of net income or loss.

The income statement starts with the total revenue, subtracts any cost of goods sold to determine the gross profit, and then deducts operating expenses, taxes, and any other expenses to arrive at net income. This showcases the operational efficiency of the company and its ability to generate profit from its sales activities.

In contrast, while the balance sheet provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time, and the cash flow statement outlines the inflow and outflow of cash within the business over a period, these documents do not focus specifically on the revenue and expenses like the income statement does. A dividend statement, on the other hand, is not a standard financial statement and typically relates to the distribution of profit to shareholders, which is derived from the net income presented in the income statement.