Which document is used by accountants to determine how much money a business owner is currently making?

The appropriate document for accountants to determine how much money a business owner is currently making is the profit and loss statement, commonly referred to as the income statement. This document provides a summary of the company's revenues and expenses over a specific period, showing the net profit or loss that the business has generated.

This statement is crucial as it helps business owners assess their financial performance by comparing incoming revenues against outgoing expenses. It allows for an analysis of profitability, which is fundamental for decision-making and strategic planning. The clarity provided by the profit and loss statement in illustrating earnings and expenditures is what makes it the go-to document for assessing current financial performance.

While the cash flow statement tracks the actual cash inflows and outflows during a period and the balance sheet presents a snapshot of assets, liabilities, and equity at a specific point in time, neither of these documents directly indicates how much money a business owner is currently making in terms of profitability. The income and expenses sheet might provide some useful information regarding financial management but is typically not the standard document used to determine current earnings as comprehensively as the profit and loss statement does.