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The Income Statement is one of the financial statements that measures a business’s financial performance over a specific accounting period. It is sometimes known as the P&L report; which represents the PROFIT and LOSS that the business can incur during a period of time such as a year, month or even week.
The simple formula for the income statement is
Revenue – Expenses = Profit or Loss
BREAKING DOWN THE INCOME STATEMENT
The income statement consists of four major areas: Revenue, Cost of Goods Sold, Operating Expenses & Net Income. Let’s take a closer look using Investopedia.
INCOME STATEMENT VIDEO PLAYLIST