How To Create A Income Statement

What are the 3 sections of an income statement?

Revenues, Expenses, and Profit

Each of the three main elements of the income statement is described below.

What types of accounts are on the income statement?

The income statement accounts most commonly used are as follows:

  • Revenue. Contains revenue from the sale of products and services.
  • Sales discounts.
  • Cost of goods sold.
  • Compensation expense.
  • Depreciation and amortization expense.
  • Employee benefits.
  • Insurance expense.
  • Marketing expenses.
  • Are receivables included in income statement?

    Accounts receivable is listed as a current asset on the balance sheet, since it is usually convertible into cash in less than one year. This amount appears in the top line of the income statement. The balance in the accounts receivable account is comprised of all unpaid receivables.

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