Which report would you refer to for understanding financial performance over a period?

The Income Statement is the most appropriate report for understanding financial performance over a period because it summarizes a company's revenues and expenses, culminating in net income or loss over a specific timeframe. This statement provides essential insights into how much money the organization earned through sales and how much it spent on costs, thereby giving a clear picture of profitability.

In contrast, while the Balance Sheet offers a snapshot of a company’s financial position at a specific point in time by detailing assets, liabilities, and equity, it does not convey performance over time. The Expense Sheet, though it provides details on expenditures, lacks the comprehensive view of how revenues and expenses interact to determine net income. The Cash Flow Sheet, on the other hand, tracks the inflow and outflow of cash within the business but does not directly show overall financial performance in terms of profitability, as it focuses solely on cash movements rather than the relationship between total revenues and total expenses.

Therefore, the Income Statement is the most suitable resource for analyzing financial performance across a designated period, revealing trends, patterns, and changes in profitability.