What is an income statement ?

Author: Ruban
Sector: Education
Industry: Investment

The income statement focuses on the revenue and expenses of a company during a specified fiscal period. The income statement is one of the three crucial financial statements; others are, balance sheet and the cash flow statements. All three of these statements are used for reporting the financial performance of a company over a specified accounting period.

The focus of the income statement is on four key items - revenue, expenses, gains, and losses. Income statement trickles down to earnings(loss) per share from total revenue to net income(loss).

The following information will be available in the income statement, but the format may vary depending on the local regulatory requirements.


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