Income Statements

AccountingIntermediate Level

10 flashcards

Card 1 of 1010%

Question

What are the main components of an income statement?

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Answer

Definition

An income statement includes revenues, expenses, and net income or loss, showing a company's financial performance over a specific period.

Example

For instance, if a business earns $100,000 in sales and incurs $70,000 in expenses, its net income is $30,000.

Quick Tip

Remember: Revenue - Expenses = Net Income!

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