Quick Definition

An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing how the revenue is transformed into the net income.

Examples

• 1A technology company reports its quarterly income statement showing revenue from software sales, costs of development, and administrative expenses.
• 2A restaurant chain's annual income statement details total sales, cost of goods sold, labor costs, and net profit after taxes.
• 3A retail store's monthly income statement includes revenue from merchandise sales, inventory costs, rent, and utilities, illustrating the store's financial performance.

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