Certified Hospitality Manager (CHM) 2025 – 400 Free Practice Questions to Pass the Exam

The Income Statement is the financial statement that summarizes a hotel’s revenues and expenses over a specific period. It provides insights into the hotel’s operating performance by detailing how much money was made (revenues) and how much was spent (expenses) during the period in question. This statement is crucial for assessing profitability, as it allows management, investors, and other stakeholders to understand the hotel's financial health and operational efficiency.

In contrast, the Balance Sheet provides a snapshot of the hotel's assets, liabilities, and equity at a specific point in time, thus representing its financial position rather than its performance over a period. The Cash Flow Statement focuses on the cash inflows and outflows, detailing the sources and uses of cash without explicitly breaking down revenues and expenses. Lastly, the Equity Statement shows changes in equity over time, relating mainly to investments, dividends, and other equity-related items, rather than operational income and expenses.