An income statement is a summary of an organization's financial position at a given point it time, showing assets, liabilities, and owner's equity.

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An income statement summarizes an organization's revenues and expenses over a period of time to show its net income or loss, not its financial position at a point in time. The statement that describes an organization's financial position (assets, liabilities, and owner's equity) at a specific point in time is the balance sheet.

An Income Statement Is a Summary of an Organization's Financial