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okay classroom welcome back to accounting 230 were not going to talk about the income statement before were talking specifically about the income statement I want to point out revenues minus expenses equal net income thats basically the income statement our revenues are prior our sales these items that we go out and sell to make money for our business minus the expenses that we have equal or net income typical type of expenses would be salary expense rent expense supplies expense okay those are some very typical type of expenses that we would incur so our revenues minus expenses give us our net income now the income statement is a formal financial statement the last video we went over was the balance sheet okay thats also a formal financial statement but the balance sheet remember shows assets equal liabilities plus equity okay it shows us how we get those assets alright and it can be a comparative and classified balance sheet comparative meaning is showing between years an income
