What type of information is critical for a company to disclose on its income statement?

The critical information that a company must disclose on its income statement primarily includes revenue and expenses. This is because the income statement is designed to show the company's financial performance over a specific period, typically through the computation of net income or loss. Revenue reflects the total income generated from normal business operations, while expenses encompass the costs incurred in generating that revenue. Together, they provide a clear picture of the company's profitability, which is essential for stakeholders, including investors, creditors, and management, to assess financial health and operational efficiency.

In contrast, secret liabilities, which refer to hidden obligations that could affect a company's financial situation, do not belong on the income statement and would typically be disclosed in the notes to the financial statements. Owner's equity is reported on the balance sheet rather than the income statement, as it reflects the residual interest in the company's assets after deducting liabilities. Finally, cash flow transactions are reflected in the cash flow statement, which provides insights into the cash inflows and outflows, rather than the income statement that summarizes performance through revenues and expenses. Therefore, revenue and expenses are the key components of the income statement.