The income statement primarily shows whether a business made a profit from selling goods or providing services after subtracting the costs of doing business.

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The income statement is a financial statement that shows the revenues earned and expenses incurred by a business during a specific period of time. The main purpose of the income statement is to determine the net profit or loss of a business by subtracting the total expenses from the total revenues. Therefore, it primarily shows whether a business made a profit from selling goods or providing services after subtracting the costs of doing business.

The Income Statement Primarily Shows Whether a Business Made a Profit