Income statement shows:

• A. The balance of the assets at period end
• B. Your total cash on hand
• C. Net income after expenses
• D. How much money you make after all expenses are paid

Answer: (D)

This question tests what the income statement shows about profitability over a period. An income statement summarizes revenues and expenses for a defined time and reveals the net result—the amount left after all costs are deducted. Saying it’s “how much money you make after all expenses are paid” directly describes that bottom-line figure, which is why this phrasing fits best. Note that asset balances at period end belong to the balance sheet, and total cash on hand relates to cash flow statements, not the income statement. Net income after expenses conveys the same idea in this context, so the bottom-line answer effectively captures what the income statement reports.