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The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting.
Income and expense statement definition. Balance sheet income statement statement of owner s equity. Income statement definition an accounting of income and expenses that indicates a firm s net profit or loss over a certain period of time usually one year. The income statement also called a profit and loss statement is a report made by company management that shows the revenue expenses and net income or loss for a period. In very few cases when a trader incurs wages expense for minor alteration in the goods to convert them into selling then wages might reasonably be shown before gross profit as part of cost of sales.
Also known as the profit and loss statement or the statement of revenue and expense the income statement primarily focuses on the company s revenues and expenses during a particular period.
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