Accounting Principles Income Statement
An income statement, also known as a profit and loss statement, is a financial report that shows a company's revenues, expenses, and net income over a specific period of time. It provides a detailed breakdown of the company's financial performance by displaying the sources of revenue, various types of expenses, and the resulting profit or loss. The income statement follows the fundamental accounting principle of matching expenses with revenues to accurately reflect the company's financial position. It is an essential component of financial statements used by investors, creditors, and management to assess the company's profitability and financial health.
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