Which financial statement reports a practice's profitability over a specific period?

The Income Statement, also known as the Profit and Loss Statement, is the financial statement that reports a practice's profitability over a specific period. This statement presents revenues, expenses, and profits or losses, allowing stakeholders to assess the operational efficiency and profitability of the practice during the designated time frame, such as a quarter or a year. By summarizing income generated from services provided and deducting the costs incurred, it reveals the net income or loss, which is crucial for evaluating financial performance.

In contrast, the Balance Sheet provides a snapshot of a practice's assets, liabilities, and equity at a specific point in time, rather than over a period. The Cash Flow Statement tracks the inflow and outflow of cash, detailing how cash is generated and used, but it does not directly measure profitability. The Statement of Changes in Equity outlines changes in the equity section of the Balance Sheet over a period but does not address income or expenses directly. Thus, the Income Statement is specifically aimed at reflecting a practice's profitability during a certain period, making it the correct choice.