An income statement is one of the three major financial statements that businesses issue. Learn how it is used to track revenue, expenses, gains, and losses.

The Financial Accounting Standards Board provides broad definitions of revenues, expenses, gains, losses, and other terms that appear on the income statement in its Statement of Concepts No. 6.

The generally accepted accounting formula for a basic income statement is to deduct the cost of goods sold from the sales to obtain gross profit, then to deduct all other expenses, including ...

Although the basics of an income statement are the same from business to business, there are notable differences between services, merchandisers, and manufacturers when it comes to the accounting ...

At its most basic, the income statement is a breakdown of revenue and expenses. But there's a lot more to be gleaned from it. Here's how to start digging in.

Income statement. Also called a profit and loss statement, ... However, it's still important to understand basic accounting principles to know what's happening behind the scenes.

The income statement shows your company's profits or losses for a set time period. ... Troubleshooting inaccuracies when they occur is simpler with a basic understanding of the accounting process.

A bookkeeper can handle basic accounting needs, but a Certified Public Accountant ... income statement, and statement of cash flows. Accountants also provide other services, ...

Accounting is the process of keeping track of all financial transactions within a business, such as any money coming in and money going out. It’s not only important for businesses in terms of ...