Which financial statement summarizes a healthcare entity's revenue and expenses over a period of time?

The income statement is the financial statement that summarizes a healthcare entity's revenue and expenses over a specific period of time, typically a fiscal quarter or year. This statement captures the performance of the organization by presenting how much money was earned (revenue) versus how much was spent (expenses) during that timeframe.

It provides valuable insights into the financial health of the entity, indicating whether it has made a profit or incurred a loss. For healthcare organizations, this is particularly crucial, as it helps stakeholders assess operational efficiency and profitability, which are key for sustainability and growth in the healthcare sector.

In contrast, the balance sheet presents a snapshot of the organization's financial position at a single point in time, detailing its assets, liabilities, and equity. The statement of cash flows outlines the inflows and outflows of cash over a period but does not summarize revenues and expenses directly. The statement of retained earnings tracks changes in equity and is influenced by the income statement but does not directly summarize revenues and expenses itself. Thus, the income statement is specifically tailored for the purpose of summarizing financial performance over a set timeframe, making it the correct choice.