Which financial statement projects sales and expenses over a specific period of time?

The income statement is designed to project sales and expenses over a specific period of time, typically reflecting the financial performance of a business within that timeframe. This statement provides a detailed view of a company's revenues and expenses, ultimately leading to the calculation of net profit or loss. By summarizing the financial outcome from operations, the income statement helps stakeholders assess the company's ability to generate profit and manage costs effectively.

In contrast, the balance sheet offers a snapshot of a company's financial position at a specific moment, detailing assets, liabilities, and equity, rather than projecting future performance. The cash flow statement tracks the inflow and outflow of cash over a period, which is important for understanding liquidity but does not focus directly on sales versus expenses. An equity statement, often referred to as a statement of changes in equity, outlines changes in the owner's equity accounts but is not primarily focused on sales or expenses. Thus, the income statement is the appropriate financial statement for projecting sales and expenses over time.