Which of the following is a common financial statement used in business?

The income statement is indeed a common financial statement used in business. It serves to illustrate a company's financial performance over a specific period, typically showing revenues and expenses. By providing details on how much money a company earned (revenues) and what it spent (expenses), the income statement reveals the profitability of the business during that time frame.

This statement is crucial for stakeholders, including investors, management, and analysts, as it helps in assessing how well the company is generating profit and managing its costs. The income statement typically culminates in a net income figure, which indicates whether the business has made a profit or incurred a loss during the reporting period.

While the balance sheet and cash flow statement are also critical financial statements, focusing on the company's financial position and cash inflows/outflows respectively, the income statement is particularly significant for understanding operational performance. The shareholder equity statement, while relevant, is less commonly referenced than the income statement, balance sheet, and cash flow statement, which are considered the three main financial statements in accounting.