The Income Statement is the major device for measuring profitability of a firm over a period of time. True False

The answer is True.

Explanation:

Income statement tells us how much money is received from the sale of goods and services. This is referred to as revenue or income.

It also tells how money is being used to generate this revenue. This is known as expenses.

Traditionally, profit equals selling price minus cost price. It can also be derived as income minus expenses.

Income statement also show the amount of interest (interest expense) being paid and tax being paid.

Income statement is a true representation of profitability. And it is shown as net income