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Commerce · Q161

Accounting

Graduate and Post Graduate · Commerce · question 161

Q161

Which of the following financial reports shows the profitability of a business?

A.
Income statement
Answer
B.
Balance sheet
C.
Cash flow statement
D.
Statement of changes in equity

Answer: Option A

Solution

Answer: Option A
Solution:
Income statement shows the profitability of a business. The income statement is the most important report for many analysts. It shows the company's operating results for an entire year.