The income statement explains all changes in the assets,liabilities,and equity of a company between two consecutive balance sheet dates.

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The income statement explains the revenues, expenses, gains, and losses of a company over a specific period of time, usually one year or one quarter. It does not directly relate to changes in assets, liabilities, and equity between balance sheet dates, although it can indirectly affect these accounts.

The Income Statement Explains All Changes in the Assets,liabilities,and Equity