Which financial statement provides a summary of a firm's revenues and expenses over a period?

The income statement provides a summary of a firm's revenues and expenses over a specific period, usually a quarter or a year. This financial statement is crucial because it illustrates how much money a company earned (revenue) and how much it spent (expenses), ultimately showing the profitability of the business during that time frame. The bottom line of the income statement is the net income or loss, which indicates whether the firm made a profit or incurred a loss during the period.

In contrast, the cash flow statement records the actual inflows and outflows of cash in a firm, emphasizing liquidity rather than profitability. The balance sheet offers a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time, reflecting the financial position rather than the performance over a period. The statement of shareholder equity details changes in equity from various sources, including retained earnings and additional investments, but does not summarize revenues and expenses. This highlights why the income statement is the correct answer for summarizing revenues and expenses.