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An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a companys financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
The combined accounting statement includes all deposits, withdrawals and other transactions, as well as beginning and ending balances. Instead of the bank having to print and mail or email separate statements for each account, the customer receives one record of all pertinent information.
In its simplest form, the Statement of RE begins with a revenue section, followed by an expense section. The total revenue minus the total expenses produces The Bottom Line. If the revenue is greater than expenses, you have revenue over expenses.
An income statement shows a companys revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (PL) statement or an earnings statement.
An income statement is a financial statement that shows you the companys income and expenditures. It also shows whether a company is making profit or loss for a given period. The income statement, along with balance sheet and cash flow statement, helps you understand the financial health of your business.
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Revenue expenditures or operating expenses are recorded on the income statement. These expenses are subtracted from the revenue that a company generates from sales to eventually arrive at the net income or profit for the period.

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