Revenue Statement Vs Income Statement

The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this.

Revenue statement vs income statement. In accounting the income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time. A well run company will generally have both high revenue plenty of success in sales and well proportioned income ability to keep operating costs low. Income statement is one of the most important financial statements of an organization and the basic premise of this income statement is the total revenues minus all expenses equals net income. Revenue also known as gross sales is often referred to as the top line because it sits at the top of the income statement.

But the income is a subset of the revenue whereas the revenue is the superset of the income. It sits at the bottom of your income statement. Income or net income is a company s total earnings or profit. The optimal gross profit margin varies between companies based on the type of goods service they sell and the.

We start the income statement by gross sales and then deduct the sales return or sales discount. Examples of revenue vs.