Which financial statement primarily shows whether a contractor made a profit over a period of time?
Correct Answer
C) Income statement.
The income statement reports revenue and expenses over a period and shows profit or loss.
Why This Is the Correct Answer
The income statement reports revenue and expenses over a period and shows profit or loss.
Why the Other Options Are Wrong
Option A: Balance sheet.
Balance sheet. puts the item in the wrong financial bucket, timing, base, or comparison for financial statements.
Option B: Accounts receivable aging.
Accounts receivable aging. puts the item in the wrong financial bucket, timing, base, or comparison for financial statements.
Option D: Daily timecard report.
Daily timecard report. puts the item in the wrong financial bucket, timing, base, or comparison for financial statements.
Memory Technique
Financial Statements ledger for Explaining Basic: put controlling in the right drawer.
Reference Hint
Study anchor (closed-book): memorize Financial statements from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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