What is typically measured by the income statement’s net income?

The net income reported on an income statement represents the profit or loss generated by a company over a specific period, after accounting for all revenues and expenses. It provides a clear view of the company's performance, indicating whether it was able to generate sufficient revenue to cover its costs during that time frame.

This measure is essential for stakeholders, such as investors and management, as it reflects the operational efficiency of the business and its ability to generate profit. Success or failure in managing revenue and expenses directly influences net income, making it a vital indicator of financial health and operational effectiveness.

While other financial metrics could provide insights into a company's overall financial condition, net income specifically focuses on profitability related to operations, making option B the most appropriate description of what is conveyed by the income statement's net income.