Which financial statement provides insight into a company’s revenues and expenses over a period of time?

The Profit and Loss Statement, also known as the Income Statement, is the financial statement that provides insight into a company’s revenues and expenses over a specific period of time. This statement summarizes the company’s performance, allowing stakeholders to see how much money the company earned (revenues) and how much it spent (expenses), ultimately leading to the net profit or loss for that period.

The Profit and Loss Statement plays a crucial role in assessing a company’s operational efficiency and profitability. It reflects the company's ability to generate profit by increasing revenue, reducing costs, or both, giving investors and management a clear view of operational performance.

In contrast, while the Balance Sheet provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time, it does not show revenue or expenses. The Cash Flow Statement details the inflows and outflows of cash, highlighting how actual cash is generated and used over a timeframe, but it doesn’t directly present net income or operational performance. Finally, the Equity Statement outlines changes in equity over a period but does not include revenue or expenses.

Thus, the Profit and Loss Statement is essential for understanding the financial outcomes of a company's operations over time.