Which financial statement is primarily concerned with revenues and expenses?

The income statement is primarily concerned with revenues and expenses because it provides a summary of a company's financial performance over a specific period. This statement details how much money the company earned (revenues) and the costs incurred (expenses) to help generate that revenue, ultimately leading to the determination of net profit or loss for the period.

The income statement starts with revenues, subtracts the expenses associated with generating those revenues, and provides insights into whether the company operated profitably. This focus on inflows and outflows related to the company's core operations makes the income statement essential for understanding its operational efficiency and profitability.

In contrast, the balance sheet presents a snapshot of a company's assets, liabilities, and equity at a particular point in time, rather than its performance over a period. The cash flow statement tracks the inflow and outflow of cash and cash equivalents, focusing on liquidity and cash management rather than profitability. The statement of shareholders' equity outlines changes in equity accounts, such as retained earnings and stock issuance, but does not directly address revenues and expenses. Thus, the income statement distinctly addresses the financial aspect of operations by relating to revenues and expenses, making it the correct response.