What does the statement of income primarily show?

The statement of income, often referred to as the income statement, primarily shows a company's revenue and expenses over a specific period of time. This financial document provides a clear overview of how much money the company has earned (income or revenue) and how much it has spent (expenses). The core purpose of the statement is to illustrate the company's profitability, allowing stakeholders to assess whether the company's operations are generating a profit or a loss during the reporting period.

By detailing the revenue generated from sales and the costs related to operations, the statement of income helps in understanding the overall financial performance of a business. Key metrics such as gross profit, operating income, and net income are derived from this statement, providing insights into different aspects of the company's financial health.

On the other hand, the other options focus on different aspects of financial statements. While company assets and liabilities are reported on the balance sheet, investments pertain to the long-term financial strategies of the business rather than its operational performance for a specific period. Thus, the statement of income is specifically designed to provide a detailed view of revenue and expenses, distinguishing it from other financial statements that cover different aspects of a company's finances.