Intuit Bookkeeping Professional Certificate Practice Exam 2025 – All-in-One Guide to Master Your Certification!

Question: 1 / 400

Which financial statement summarizes a company's operational costs?

Balance Sheet

Income Statement

The Income Statement is the financial statement that summarizes a company's operational costs and revenues over a specific period. It provides an overview of the profitability of the business by detailing income earned from sales, alongside the costs incurred to generate that income, including operational expenses such as cost of goods sold (COGS), selling, general and administrative expenses, and other relevant costs.

This statement ultimately reflects the company's performance, revealing how much profit or loss was generated during the period after accounting for all revenues and expenses. Therefore, it serves as a critical tool for stakeholders, enabling them to assess the company's operational efficiency and profitability.

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Statement of Cash Flows

Retained Earnings Statement

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