Which financial statement shows a company's performance over a specific period?

The income statement provides a comprehensive overview of a company's performance over a specific period, typically a quarter or a year. It summarizes revenues, expenses, and profits or losses, allowing users to assess how well the company has generated profit from its operations during that timeframe. This statement is fundamental for understanding operational efficiency and making comparisons across different periods or with other companies.

In contrast, the balance sheet offers a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity. The cash flow statement tracks the inflow and outflow of cash over a period, reflecting cash management rather than overall performance. The statement of changes in equity outlines the changes in shareholders' equity over a specific period but does not directly measure operational performance.