The income statement can be expressed as:
Sales - Variable Expenses - Fixed Expenses = Net Income

Question

Quizplus · Accepted Answer

This is the standard formula for calculating the income statement, where sales is the total revenue earned, variable expenses are costs that fluctuate with sales volume, fixed expenses are costs that remain constant regardless of sales volume, and net income is the profit or loss remaining after all expenses are deducted from sales.

The Income Statement Can Be Expressed As