MANAGEMENT

Detailed explanation-1: -An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a company’s financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.

Detailed explanation-2: -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.

Detailed explanation-3: -The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.

Detailed explanation-4: -The income statement is read from top to bottom, starting with revenues, sometimes called the “top line.” Expenses and costs are subtracted, followed by taxes. The end result is the company’s net income-or profit-before paying any dividends, and this is where the term “bottom line” comes from.

Detailed explanation-5: -Sales revenue is the income received by a company from its sales of goods or the provision of services. Sales revenue can be shown on the income statement by either the gross revenue amount or net revenue. Gross revenue is before contra-revenue accounts like allowance for sales returns and bad debt expense.