In accounting, profit, revenue, expenses, and net income/loss are integral and they are defined as:
- Profit - returns on revenue after expenses.
- Revenue - returns from selling goods or providing services.
- Expenses - costs incurred to run business.
- Net income = profit acquired after taxation.
- Net loss - losses when expenses are more than revenue.
What comprises the Income Statement?
The Income statement includes the revenue which is the amount of sales or services provided by the company in a period.
The costs of running the company (expenses) are deducted from the revenue to find the profit. This can also be called the net income.
A net loss comes about when the expenses are more than revenue and this is not an ideal situation for companies.
Find out more on the income statement at https://brainly.com/question/21851842.
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