Purpose of an income statement: tell’s the investor, business owner or CEO the results of business operations over a set period of time.
- Income statements are always displayed for a certain time they cover. 1 Year, quarterly, monthly, set period for example 1 March 2021 to 28 February 2022.
- Basic Components
- Displaying the Revenue
- Subtracting the cost of sales and expenses
- Show us if the business earned a profit or loss