Free WGU Accounting for Decision Makers (C213) Exam Dumps October 2026

The correct answer is D. Income statement. The income statement reports a company's revenues and expenses over a specific period of time and shows whether the company earned a profit or incurred a loss during that period. Standard accounting materials explain that the income statement summarizes revenue and expense activity and presents net income or net loss for the reporting period.

Option A, the balance sheet, is incorrect because it shows financial position at a particular date rather than performance over a period. Option B, the statement of retained earnings, explains changes in retained earnings, including the effects of net income and dividends, but it does not serve as the main report for listing revenues and expenses. Option C, the statement of cash flows, focuses on cash inflows and outflows from operating, investing, and financing activities rather than accrual-based income and expense measurement. In accounting, when the question asks which statement is used to determine income and expenses for a period, the income statement is the direct and correct answer. That is why Option D is the best answer.

The correct answer is A. The net income of the company. In financial accounting, the overall economic performance of a company for a specific period is generally summarized by net income or net loss. Net income reflects the result of revenues, expenses, gains, and losses recognized during the period under accrual accounting. It is the bottom-line measure on the income statement and is widely used to evaluate profitability and performance. OpenStax describes the income statement as the report that presents revenues and expenses for a period and arrives at net income.

Option B focuses only on cash receipts and cash payments, which is a cash flow perspective rather than the full accrual-based measure of economic performance. Option C refers more narrowly to gross profit, because it compares sales with cost of goods sold only and excludes operating expenses, interest, and taxes. Option D, market value, reflects investor valuation rather than accounting performance for a reporting period. Since the question asks about the company's overall economic performance for a given time period, the most accurate accounting answer is net income. Therefore, Option A is correct.