Which document would a business likely use to report annual performance?

An income statement is a financial document that summarizes a company's revenues and expenses over a specific period, typically a year. It is used to assess the company's financial performance during that time frame. This statement plays a crucial role in understanding the profitability of a business, as it offers insights into how much money the business earned compared to its expenses, ultimately determining the net income or loss.

By using the income statement, stakeholders such as owners, investors, and management can analyze trends, identify areas of strength or concern within the business, and make informed decisions for the future. This comprehensive report reflects the results of the business's operations and is essential for annual performance evaluations, making it the appropriate choice for this question.

In contrast, a proposal form is typically used to outline plans or offers and is not focused on financial performance. A credit report provides information on an individual or company's credit history and is not designed to reflect annual performance metrics. An insurance policy outlines coverage agreements and terms, which do not pertain to business performance evaluation. Thus, the income statement stands out as the key document for reporting and analyzing annual business performance.