BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.

Detailed explanation-2: -An income statement reports a business’s revenues, expenses, and overall profit or loss for a specific time period. It’s one of the 3 major financial statements that small businesses prepare to report on their financial performance, along with the balance sheet and the cash flow statement.

Detailed explanation-3: -When revenues exceed expenses, the company has a net profit. When expenses exceed revenues, the company has a net loss. Report it on a company’s income statement. Net income is an important measure of a company’s profitability and financial performance for the relevant fiscal period.

Detailed explanation-4: -An income statement assesses the profit or loss of a business over a period of time, whereas a balance sheet shows the financial position of the business at a specific point in time.

Detailed explanation-5: -Net income can be either positive or negative. If you have more revenues than expenses, you will have a positive net income. If your expenses outweigh your revenues, you will have a negative net income, which is known as a net loss.