What is the primary purpose of the income statement?

The primary purpose of the income statement is to show the company's revenues and expenses over a specific period, ultimately leading to the calculation of net income or loss. This financial statement provides stakeholders with essential insights into the company's operational performance, indicating how well it generates profit from its activities and how effectively it controls costs. By analyzing the income statement, users can assess trends in revenue growth, evaluate operational efficiency, and make informed decisions regarding investments, financing, and overall business strategies.

The other options, while significant to financial management, serve different functions. Detailing a company's cash balance pertains to the cash flow statement, summarizing liabilities falls under the balance sheet, and stock performance tracking is associated with stock market analysis rather than a specific financial statement. Each of these other aspects provides valuable information, but they do not fulfill the primary role of the income statement, which is focused on capturing the flow of revenues and expenses.