What does the financial statement known as an income statement report?

The income statement is a crucial financial document that provides a comprehensive view of a company's financial performance over a specific period, typically a quarter or a year. It summarizes both revenues and expenses, showing how much money the company brought in from its various activities and how much it spent during that same period.

By presenting a detailed account of revenues generated, such as profits earned from selling tickets, alongside the expenses incurred, an income statement allows stakeholders to assess the company's profitability. The final figure derived from these two categories is the net income or loss, which indicates whether the business has made a profit or suffered a loss during that timeframe.

This dual reporting is essential for evaluating the overall financial health of a business, enabling management and investors to make informed decisions regarding financial strategies and future prospects. The other options fail to encapsulate the full scope of what an income statement represents, as they either limit the scope to only one aspect (expenses or savings) or focus too narrowly on a specific revenue source without considering overall operational costs.