Which financial statement reports net income for a period?

• A. Balance sheet
• B. Cash flow statement
• C. Income statement
• D. Post-closing trial balance

Answer: (C)

Understanding where net income is reported helps you see how companies show profitability. Net income is the result of revenues minus expenses for a specific period, so the income statement is designed to present these totals and the resulting profit or loss for that period. The balance sheet shows what the company owns and owes at a point in time, not how much was earned over a period. The cash flow statement tracks actual cash inflows and outflows, reflecting liquidity rather than profitability. The post-closing trial balance lists balances after closing entries, not the period’s earnings. So the income statement is the correct place to report net income for a period.