Which financial document summarizes an individual's income and expenses?

A financial statement serves as a summary of an individual's income and expenses, presenting a clear picture of the person's financial performance over a specific period. This document typically includes details about revenues from various sources, such as wages, investments, or business income, alongside a comprehensive breakdown of expenses, including fixed and variable costs. This holistic view enables individuals to assess their financial health, manage budgets, and make informed decisions regarding savings, investments, and expenditures.

While other documents such as a balance sheet and a cash flow statement play vital roles in financial analysis, they each serve a different purpose. A balance sheet reflects an individual's assets, liabilities, and equity at a specific point in time, rather than summarizing income and expenses over a period. A cash flow statement focuses specifically on the inflow and outflow of cash, showing how cash movements impact liquidity, rather than providing an extensive summary of overall income and expenses. A tax return, while it does contain information about earnings and deductions for tax purposes, is more focused on reporting income to tax authorities and may not encompass all personal financial elements beyond tax considerations.