The Income Statement

The income statements reports the revenues, expenses, and overall net profit or loss over a given reporting period.

Revenue is cash inflows or other enhancements of assets derived by delivering or producing goods.

The cost of goods sold, calculated and recorded in the income statement, is a useful indicator of overall production costs and efficiency.

General and administrative non-production related costs provide a good indication of overall operational efficiency.

Net income in accounting is an entity's income minus expenses for an accounting period.

The income statement displays the revenues recognized for a specified period and the costs and expenses charged against these revenues.