Section 5
The Income Statement
Book
Version 6
By Boundless
By Boundless
Boundless Business
Business
by Boundless
6 concepts
Defining the Income Statement
The income statements reports the revenues, expenses, and overall net profit or loss over a given reporting period.
Revenues
Revenue is cash inflows or other enhancements of assets derived by delivering or producing goods.
Cost of Goods Sold
The cost of goods sold, calculatedĀ and recorded in the income statement, is a useful indicator of overall production costs and efficiency.
General and Administrative Expenses (G&A)
General and administrative non-production related costs provide a good indication of overall operational efficiency.
Net Income
Net income in accounting is an entity's income minus expenses for an accounting period.
Sample Income Statement
The income statement displays the revenues recognized for a specified period and the costs and expenses charged against these revenues.