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Which of the following is the primary objective of an income statement? A. Providing managers with...

Which of the following is the primary objective of an income statement?

A. Providing managers with detailed information about where the enterprise stands at a specific date.

B. Providing users outside the business organization with information about the company's operating results for a period of time.

C. Reporting to the Internal Revenue Service the company's taxable income.

D. Indicating to investors in a particular company the current market values of their investments.

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Answer #1

The correct answer is B

Income statement represents the performance of entity for a specific period of time, while balance sheet represents the information about where the enterprise stands at a specific date. Therefore income statement provides to the managers & its users with the information about the company's operating results for a period of time.

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