Answer :
Final answer:
The income statement shows revenues and expenses over a period, analyzing profitability and cost coverage.
Explanation:
The income statement shows the revenues and expenses for a specific period of time. It provides a summary of how much money a company made (revenues) and how much it spent (expenses) during that time frame.
The main emphasis on the income statement is the relationship between revenues and expenses. If revenues exceed expenses, net assets increase, indicating profitability. If expenses surpass revenues, net assets decrease.
By analyzing the income statement, one can determine whether an organization's programs and services cover their costs, thus indicating whether the organization is profitable.
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