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It is the statement which summarizes the amount of revenue generated and expenses made by the business for the particular accounting period.
Revenues and expenses on income statement. Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa. The operating section of an income statement includes revenue and expenses. The three main elements of income statement include revenues expenses and net income. Revenues are the incomes that the company generates from the sale of goods or services or other activities related to the main operation of the company s business.
Also known as the profit and loss statement or the statement of revenue and expense the income statement primarily focuses on the company s revenues and expenses during a particular period. The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. The income statement consists of revenues and expenses along with the resulting net income or loss over a period of time due to earning activities. For a trading company like abc co.
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