What financial document summarizes a property's annual revenue and expenses?

The income statement is the financial document that specifically summarizes a property's annual revenue and expenses. This statement provides a detailed overview of the operational profitability of the property over a specified period, typically one year. It outlines the total income generated from rent or other sources, along with all operating expenses such as maintenance, property management, taxes, and any other costs incurred.

This document is essential for understanding how much profit or loss the property generates during that fiscal year. Investors and property managers use the income statement to assess the financial health of the property, make informed decisions about management strategies, and evaluate performance against budget forecasts or historical data.

In contrast, the other financial documents serve different purposes: the net income report typically summarizes income after expenses have been accounted for but doesn't provide the detailed revenue and expenses breakdown like the income statement does. The balance sheet reflects the assets, liabilities, and owner's equity at a specific point in time, giving a snapshot view of the property's financial position rather than its operational performance. The cash flow statement indicates how cash is generated and used in operating, investing, and financing activities but does not directly summarize revenues and expenses. Thus, the income statement is the most accurate choice for summarizing a property's annual revenue and expenses.