Question

Melissa is the Executive Director of a local food bank and is assessing the financial situation of her not-for-profit organization. Melissa uses a(n) _____ to determine whether revenues from contributions and other sources will cover operating costs.

Answer 1

Income statement is the correct answer.

Step-by-step explanation:

An income statement is important financial statement which is used to report a company's financial performance for a specific accounting period. The other two statements are balance sheet and the statement of cash flows. Income statement is also known as profit and loss statement or the revenue-expense statement. The statement focuses on the company's revenues and expenses in a particular period. It is also an important part of company's performance report.