Which financial statement evaluates a company's profitability over a specific period?

The Income Statement is the financial statement that specifically evaluates a company's profitability over a defined period. It provides a detailed breakdown of revenues, expenses, and profits (or losses) for that timeframe, typically quarterly or annually. This statement reflects how much money the company earned by subtracting its operational costs, providing a clear picture of financial performance.

In contrast, the Balance Sheet offers a snapshot of a company's assets, liabilities, and equity at a specific point in time, rather than over a period. The Cash Flow Statement focuses on the inflows and outflows of cash, detailing how cash is generated and used, which is essential for assessing liquidity but does not directly measure profitability. The Equity Report, though it may provide insights into equity changes, is not a recognized financial statement focused on profitability. Therefore, the Income Statement is appropriately designed to show profitability, making it the correct choice in this context.