Which financial statement commonly reflects net income?

The income statement is the financial statement that commonly reflects net income. Net income represents the company's total revenue minus its total expenses, including costs of goods sold, operating expenses, interest, and taxes. This figure is crucial as it indicates the profitability of a business over a specific period.

The income statement primarily focuses on the company's financial performance, detailing how much money is made and spent. It summarizes revenues and expenses to arrive at net income, thereby providing valuable insights to stakeholders about how well the company is managing its resources to generate profit.

The balance sheet, on the other hand, provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity, but it does not reflect net income. Similarly, the cash flow statement tracks the movement of cash in and out of the business, highlighting cash generated from operating, investing, and financing activities, rather than net income. The equity statement focuses on changes in ownership equity over a specific period and does not directly show net income. Therefore, the income statement is the correct choice for reflecting net income.