Which of the following statements about the Income Statement is true?

The Income Statement provides a comprehensive summary of a company’s revenues and expenses over a specified period, typically reflecting the financial performance during a quarter or a year. This statement serves to highlight how much profit or loss the company has generated based on its operational activities. By detailing revenues earned and the costs incurred in generating those revenues, stakeholders can assess the company's profitability and overall financial health during that time frame.

In contrast, the other statements address different financial statements or concepts. For instance, the balance sheet, rather than the income statement, is responsible for listing a company’s assets and liabilities. Cash inflows and outflows are typically shown in the cash flow statement, not in the income statement. Lastly, while equity is affected by net income reported in the income statement, the income statement itself does not determine equity; that role is fulfilled by the statement of changes in equity and the balance sheet.