What is primarily recorded in an income statement?

The income statement primarily records revenues and expenses over a specific period. This financial statement provides a detailed account of how much money the company earned (revenues) and what it spent (expenses) during a given timeframe, typically a quarter or a year. By subtracting expenses from revenues, the income statement indicates the company's profitability for that period, resulting in net income or net loss.

In contrast, the other options refer to different financial statements or concepts. For instance, assets and liabilities are recorded on the balance sheet, which provides a snapshot of what the company owns and owes at a specific point in time. Cash flows from operating, investing, and financing activities are documented in the cash flow statement, which outlines how cash is generated and used in those areas. The net worth of the company, often referred to as equity, is also captured on the balance sheet and represents the residual interest in the assets of the entity after deducting liabilities. Therefore, the primary focus of the income statement is to provide insight into the company's operational performance during a particular period through its revenues and expenses.