Certified Supply Chain Professional (CSCP) Practice Exam

What information does an income statement provide over a period of time?

1. The list of assets owned

2. Details of made or lost money

3. The amount of liabilities owed

4. The overall market position

The correct answer is: Details of made or lost money

An income statement provides details of the revenues and expenses incurred during a specific period, allowing users to understand how much money was earned (or lost) within that timeframe. This financial document summarizes the operational performance by showing the net income or loss, which is the difference between total revenues and total expenses. By focusing on income and expenses, the income statement offers critical insights into a company's profitability and operational efficiency. Investors, management, and stakeholders utilize this information to assess financial health, make informed decisions, and strategize for future operations. Contrastingly, the other options pertain to different financial statements or aspects of financial performance: a balance sheet would present a list of assets owned and liabilities owed, while market position relates more to competitive analysis rather than the financial specifics detailed in an income statement.