Category on Financial Accounting

The “Income Statement” is a financial statement that summarizes a company’s revenues and expenses and the resulting net income.

It is the first financial statement that is prepared and is a valuable tool in an accounting information system.

An income statement provides information regarding the “results of operations” of a business, or otherwise known as “financial performance”.

In this series of lessons, you will learn about the different accounts you may encounter in an income statement, examples for each type of business, and the formats used in preparing this report.