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Accounting
Income Statement
A financial report that shows a company’s revenue, expenses, and profit (or loss) over a period of time.
The income statement answers the question "Did we make money this quarter?" It starts with revenue at the top, subtracts costs of goods sold to get gross profit, then subtracts operating expenses, interest, and taxes to reach net profit.
Comparing income statements over multiple years shows whether the business is growing or struggling.
It’s the monthly bank statement for the entire business — but fancier and more detailed.
Real world: When Apple releases its quarterly income statement, investors see exactly how much it made from iPhone sales, services, and other products minus all the costs. That single document can move the stock price billions of dollars in a day.
💡 The income statement is the scoreboard that tells everyone whether the company is winning or losing.