Question
What's the equation for income statement in preparation of financial statements
Answers
Answered by
GPT 3.5
The equation for the income statement is:
Revenue - Expenses = Net Income
Where:
- Revenue represents the total income generated from the sale of goods or services
- Expenses represent the costs incurred in order to generate the revenue
- Net Income is the final profit or loss after all expenses have been subtracted from revenue.
Revenue - Expenses = Net Income
Where:
- Revenue represents the total income generated from the sale of goods or services
- Expenses represent the costs incurred in order to generate the revenue
- Net Income is the final profit or loss after all expenses have been subtracted from revenue.