What is the Income Statement?
The Income Statement is also called the Profit and Loss Statement or the Statement of Financial Performance.
This statement details the revenues earned by the business and the expenses incurred in earning that revenue.
An important principle in accounting (The Matching Principle) says that it is important to correctly match revenues and the expenses expenses incurred in earning those revenues.
The difference is either profit (if the revenues are greater than expenses) or alternatively a loss (if expenses are greater than revenues).
Now to learn more and have a teacher explain this. Take this Introductory Financial Reporting Tutorial Course Financial Reports Tutorial Course
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