Which financial statement shows the organization’s revenues and expenses over a period?

Which financial statement shows the organization’s revenues and expenses over a period?

• A. The Balance Sheet (Statement of Financial Position).
• B. The Cash Flow Statement.
• C. The Income Statement (Statement of Activities) or the Statement of Revenues and Expenses.
• D. The Statement of Changes in Net Assets.

Answer: (C)

Revenues and expenses over a period are shown on the income statement, which in nonprofit contexts is often titled the statement of activities. This report covers a span of time and pairs what the organization earned with what it spent, producing the net result for that period—net income for a for-profit, or a change in net assets for a nonprofit. It's different from the balance sheet, which captures assets, liabilities, and net assets at a single point in time, and from the cash flow statement, which tracks actual cash movements during the period. The income statement directly reflects performance over the period by matching revenues with the expenses incurred to generate them, and in nonprofits may break out unrestricted and restricted net assets to show how each category changes.

Revenues and expenses over a period are shown on the income statement, which in nonprofit contexts is often titled the statement of activities. This report covers a span of time and pairs what the organization earned with what it spent, producing the net result for that period—net income for a for-profit, or a change in net assets for a nonprofit. It's different from the balance sheet, which captures assets, liabilities, and net assets at a single point in time, and from the cash flow statement, which tracks actual cash movements during the period. The income statement directly reflects performance over the period by matching revenues with the expenses incurred to generate them, and in nonprofits may break out unrestricted and restricted net assets to show how each category changes.