Income statement or profit-loss statement, as it is often stated in the accounting education literature, is a review of revenues, expenditures and financial results. The main goal of this particular subject as a part of accounting degree programs is to teach students how to mark the difference between the final financial results and those conventionally defined for a certain accounting period.
Financial results can be either positive or negative. If the result is positive, it is recorded as expenditure and if negative then it is revenue. Later on their courser of accounting education, students will learn about the establishment of balance sheet, as these results are implemented in the finalization of balance sheet. Continue reading