The income statement reflects both the revenue and the expenses of a firm.

Question

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The income statement shows a company's revenue and expenses over a specific period, typically a fiscal quarter or year. The revenue section includes all money earned from the sale of goods or services, while the expense section includes all costs incurred in generating that revenue. The difference between the two is the company's net income or net loss for the period.

The Income Statement Reflects Both the Revenue and the Expenses