MANAGEMENT

Detailed explanation-1: -The income statement can be presented in a “one-step” or “two-step” format. In a “one-step” format, revenues and gains are grouped together, and expenses and losses are grouped together. These amounts are then totaled to show net income or loss.

Detailed explanation-2: -The income statement presents revenue, expenses, and net income.

Detailed explanation-3: -There are two different types of income statement that a company can prepare such as the single-step income statement and the multi-step income statement.

Detailed explanation-4: -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. expenses to generate the revenue and manage your business.