Which financial report records the income generated from sales?

The Income Statement is the correct choice because it is specifically designed to provide a summary of a company's revenues and expenses over a specific period, ultimately showcasing the net income or loss. This report captures all income generated from sales, reflecting both operating and non-operating revenue. The Income Statement is an essential component of financial reporting that helps stakeholders evaluate the profitability of the business by detailing how much money was brought in versus what was spent.

The other options do not fulfill the requirement of recording income from sales. The Cash Flow Sheet focuses on cash flows in and out of the business, providing insights into liquidity and cash management rather than specific revenue generation. The Revenue Sheet, while it suggests reporting revenues, is not a standardized financial statement used universally in accounting practices. The Balance Sheet, on the other hand, summarizes a company’s assets, liabilities, and equity at a particular point in time, thereby not reflecting income generation from sales directly. The Income Statement is the established and recognized report for tracking income from sales.