Which financial statement summarizes the revenues and expenses over a period of time?

The income statement is the financial statement that summarizes revenues and expenses over a specific period of time, typically covering a quarter or a year. This statement clearly presents how much money a company made from its operations (revenues) and how much it spent (expenses), leading to the calculation of net income or net loss for that period. This information is crucial for assessing the company's profitability and overall financial performance.

In contrast, a balance sheet provides a snapshot of a company's assets, liabilities, and equity at a single point in time, rather than over a period. The statement of cash flow details the inflow and outflow of cash over a period, focusing on liquidity rather than profitability. The trial balance is an internal accounting report that lists all accounts and their balances to ensure that debits equal credits, but it does not summarize revenues and expenses in the way that an income statement does. This makes the income statement essential for evaluating a company's financial results over a designated timeframe.