What does the Statement of Activities summarize for an organization?

The Statement of Activities is a crucial financial report for organizations, especially in the nonprofit sector, as it provides a comprehensive summary of revenues, expenses, and operating income over a specific period. This statement serves to highlight how the organization generates income and manages its expenditures, ultimately reflecting its financial performance.

By detailing revenues, which include funds raised from donations, grants, or service fees, and expenses related to its operational activities, the Statement of Activities helps stakeholders understand how efficiently the organization is functioning. Operating income, calculated as revenues minus expenses, is particularly important as it indicates whether the organization is operating at a profit or loss during the reporting period.

The other options, while involving aspects of financial reporting, do not capture the full scope of the Statement of Activities. For instance, exclusively detailing income and expenses would exclude the critical element of operating income, which provides insight into financial health. Similarly, focusing on assets and liabilities pertains more to the balance sheet than the activities over a time frame, while net assets and revenue growth are indicators of overall financial status but do not encapsulate the operational performance shown by revenues and expenses within the specified period.