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The income statement is designed to provide a summary of a company's revenues and expenses during a specific period, typically a quarter or a year. This statement allows stakeholders to see how much money a company earned from its operations (revenues) and the costs associated with those operations (expenses). The difference between these two figures is known as net income or profit, reflecting the company's financial performance during the given time frame.

In contrast, the balance sheet presents a snapshot of a company's financial position at a single point in time, listing assets, liabilities, and equity without focusing on the movement of revenues and expenses over time. The cash flow statement tracks the inflows and outflows of cash, highlighting the cash generated or used by operating, investing, and financing activities rather than detailing revenues and expenses. Lastly, the statement of equity provides insights into equity-related transactions, such as dividends and stock issuances, but does not address revenues and expenses directly. Thus, the income statement is the appropriate choice for understanding earnings and expenditures over a defined period.