What is the function of the income statement?

The primary function of the income statement is to detail revenues and expenses over a specific period, typically a fiscal quarter or year. This financial statement provides a clear view of a company's operational performance, showcasing how much money was earned (revenues) and the costs incurred (expenses) during that time frame.

By presenting this information, the income statement enables stakeholders to assess the profitability of the business, evaluate its financial health, and understand its operational efficiency. Investors, management, and analysts rely on this data to make informed decisions regarding future investments, budgeting, and strategic planning.

The other options do not accurately describe the function of the income statement. For instance, summarizing the financial position at a given time pertains to the balance sheet, which captures a snapshot of the company's assets, liabilities, and equity. Tracking cash flow is the role of the cash flow statement, which details the inflows and outflows of cash during a period. Listing all assets owned by the company also relates to the balance sheet, not the income statement.