Income Statements

Question 1

What do financial statements measure

Answer 1

Businesses measure their success with financial statements.

Question 2

What are financial statements used for?

Answer 2

Financial statements record what a business is doing with its money. Sometimes businesses have to keep financial statements by law.

Question 3

List two types of financial statements

Answer 3

• An income statement (also known as profit and loss account)
• A statement of financial position (also known as a balance sheet)

Question 4

What do income statements do?

Answer 4

Income statements show how much money a business has made