What information does an income statement provide?

An income statement is a key financial document that outlines the financial performance of a business over a specific period. It summarizes the revenues earned and the expenses incurred, leading to the calculation of the net income or loss for that period. By providing this overview, the income statement allows stakeholders to assess how well the organization is performing financially, particularly in terms of generating profits from its operations.

The focus on financial performance over time is critical as it helps in identifying trends, guiding strategic decisions, and evaluating efficiency. This information is essential for investors, managers, and financial analysts to understand the operational success and profitability of the business.

The other options, while related to financial reporting and analysis, do not accurately define the primary function of the income statement. An income statement does not delve into detailed cost analysis of services, it does not provide a snapshot of assets and liabilities, and it does not summarize expenses per service rendered in isolation. Thus, the selection of the option that indicates a record of the financial performance of a business over time effectively captures the essence of what an income statement provides.