What financial document details an agency's revenues and expenses over time?

The income statement is a crucial financial document that outlines an agency's revenues and expenses over a specific period, typically for a quarter or year. It provides a detailed account of how much money was generated from sales and services (revenues) and how much was spent on operating costs, such as salaries, rent, and other expenses. By analyzing the income statement, stakeholders can assess the agency's financial performance, determining whether it was profitable during that time frame.

This document is fundamental for understanding financial health, allowing the agency to make informed decisions about budgeting, pricing strategies, and future investments. In contrast, other financial documents serve different purposes: the balance sheet gives a snapshot of the agency’s assets and liabilities at a particular moment, the cash flow statement tracks the actual cash that flows in and out, and a financial audit is an evaluation of the financial statements to ensure accuracy and compliance regulations.