Which financial statement summarizes income and expenditures?

The income statement is a financial statement that summarizes a company's revenues and expenses over a specific period, usually a fiscal quarter or year. It provides a clear picture of operational performance, showcasing how much money was made (income) versus how much was spent (expenditures) during that timeframe.

By analyzing the income statement, stakeholders can assess whether the business is profitable and to what extent. This financial document is crucial for understanding the financial health of an organization, as it indicates the ability to generate profit from operations.

In contrast, the balance sheet provides a snapshot of an entity’s assets, liabilities, and equity at a specific point in time, while the cash flow statement tracks the movement of cash in and out of the business. A credit report focuses on an individual's creditworthiness and borrowing history, rather than summarizing income and expenditures. Therefore, the income statement is the appropriate choice when it comes to summarizing income and expenditures.