Income statement

Income statement

The income statement shows a company’s revenue or sales, other sources of income, and expenses, the net of which is the profit or loss for the period, usually one year. The income statement may show expenses by their nature (e.g. employee benefits, depreciation) or by function (e.g. cost of goods sold or administrative expenses). The net income or loss for the year is transferred to retained earnings or accumulated profits within equity.

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