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what is an income statement an income statement is a financial statement that summarizes a businessamp;#39;s revenues and expenses over a period of time we start with revenue and subtract expenses to see if it made a profit or a loss for this reason the income statement is also called the statement of profit and loss or pamp;amp;l we can expand the income statement to get more detail at the top we have Revenue the income earned from selling products or Services then we take away the direct cost of sales to find gross profit beneath that we subtract all indirect operating expenses to docHub operating profit and finally we take away non-operating costs like interest and tax which leaves us with net profit on the bottom line
