Which financial statement provides a summary of a company's revenue and expenses?

The income statement is the financial statement that provides a summary of a company's revenue and expenses over a specific period, typically a quarter or a year. This document is essential for understanding how much money a business has made and spent, allowing stakeholders to assess its profitability. By detailing revenues earned from sales and the costs incurred in generating those revenues, the income statement illustrates the overall performance of the business.

It presents essential metrics such as gross profit, operating income, and net income, providing a clear picture of the company's financial health during the reporting period. This information is crucial for investors, creditors, and management to make informed decisions regarding the company's financial sustainability and operational efficiency.

In contrast, the balance sheet provides a snapshot of the company’s assets, liabilities, and equity at a specific point in time. The cash flow statement outlines the inflows and outflows of cash over a specific period, emphasizing the company's liquidity and cash management. The equity statement shows changes in equity over a period, detailing transactions such as dividends and new investments but does not summarize revenues and expenses directly.