What is which accounts are found on an income statement?

The income statement, also known as the profit and loss (P&L) statement, primarily reports a company's financial performance over a specific period. It includes the following key accounts:

• Revenue or Sales: This represents the total income generated from the company's primary business activities, such as selling goods or providing services. Link: https://www.wikiwhat.page/kavramlar/Revenue%20or%20Sales

• Cost of Goods Sold (COGS): This includes the direct costs associated with producing the goods sold or providing the services. Link: https://www.wikiwhat.page/kavramlar/Cost%20of%20Goods%20Sold%20(COGS)

• Gross Profit: Calculated as Revenue minus Cost of Goods Sold. It represents the profit a company makes after deducting the costs associated with producing and selling its products or services. Link: https://www.wikiwhat.page/kavramlar/Gross%20Profit

• Operating Expenses: These are the expenses incurred in running the business, such as salaries, rent, utilities, marketing, and depreciation. Link: https://www.wikiwhat.page/kavramlar/Operating%20Expenses

• Operating Income or EBIT (Earnings Before Interest and Taxes): Calculated as Gross Profit minus Operating Expenses. It reflects the profitability of a company's core operations. Link: https://www.wikiwhat.page/kavramlar/Operating%20Income

• Interest Expense: The cost of borrowing money. Link: https://www.wikiwhat.page/kavramlar/Interest%20Expense

• Income Tax Expense: The amount of income tax the company owes for the period. Link: https://www.wikiwhat.page/kavramlar/Income%20Tax%20Expense

• Net Income: Also known as profit or earnings, it's the "bottom line" and represents the company's profit after all expenses, including interest and taxes, have been deducted from revenue. Link: https://www.wikiwhat.page/kavramlar/Net%20Income

Other items that may appear on the income statement depending on the company's situation include:

• Gains and Losses: Resulting from the sale of assets or other one-time events.
• Other Income and Expenses: Items that are not directly related to the company's core operations.