What is the main purpose of an income statement?

The main purpose of an income statement is to demonstrate whether the company made or lost money over a specific period. It summarizes the revenue generated and the expenses incurred, ultimately providing a clear view of the net income or loss. This information is vital for stakeholders, as it indicates the company's profitability and operational efficiency, helping investors, analysts, and management assess performance. By analyzing the income statement, one can gain insights into the financial health of the business, evaluate operational success, and make informed decisions regarding future investments or strategic initiatives.

While the other options may touch upon aspects of financial reporting or corporate governance, they do not capture the primary focus of the income statement, which is fundamentally about measuring profitability.