Which financial statement primarily reports revenues, expenses, and profit or loss?

The income statement is designed to provide a detailed account of a company’s financial performance over a specific period of time. It summarizes the revenues earned and the expenses incurred, ultimately determining the profit or loss for that period. This statement is crucial for stakeholders, including management and investors, as it indicates how effectively a company is operating in terms of generating profit from its activities.

In contrast, a statement of change in financial position focuses on the changes in equity and the cash flows between different periods, but it does not specifically detail revenues and expenses. An asset/liability statement is another term for a balance sheet, which records the company’s financial position at a specific point in time, listing assets, liabilities, and equity rather than providing a performance summary. Lastly, a balance sheet shows what the company owns and owes, but again does not present a summary of income and expenses over a period.

Thus, the income statement is essential for understanding a company's financial health through its operational results, making it the correct choice in this context.