Which financial statement focuses on a company's expenses and revenues?

The Income Statement is the financial statement that focuses specifically on a company's expenses and revenues. It summarizes the financial performance of a business over a specific accounting period, detailing how much money was made (revenues) and how much was spent (expenses). This statement is crucial for assessing a company's profitability, as it provides insights into whether the organization is generating enough income to cover its costs and potentially yield profits for its owners.

In contrast, the Balance Sheet presents a snapshot of a company's financial position at a particular point in time, outlining assets, liabilities, and equity. The Statement of Cash Flows focuses on the cash inflows and outflows during a certain period, detailing how cash is generated and used by the business. Lastly, the Statement of Changes in Equity outlines changes in ownership equity, reflecting how net income, dividends, and other factors influence the equity section of the Balance Sheet. Each of these statements serves different purposes in financial analysis, but only the Income Statement directly addresses revenues and expenses.