18.1 INCOME STATEMENT

An income statement is the presentation of a firm’s activities during a given fiscal period, normally one year. It shows firm’s revenues and expenses along with interest and taxes and their impact on its net income. This statement can be presented in different ways. One is the accounting form where the income statement is known as the profit and loss account. There are two sides. On the right hand, revenues are shown, and on the left, expenses are shown. The excess of revenue over expenses is called profit, and the excess of expenses over revenue is a loss.

 

An income statement is the presentation of a firm’s activities during a given fiscal period, normally one year. It shows firm’s revenues and expenses along with interest ...

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