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This statement provides an idea of the overall success and profitability of a company during a given period of time (Weygandt, 2006, pg. 55). This statement can be considered the most basic, since the other financial statements are based on information which is derived from the income statement. On the income statement are listed the overall revenue and expenses for the company. The revenue is listed first, normally to the right, while the expenses are listed, afterwards, normally to the left. This allows for a more visible breakdown in the difference between the two. After all the revenue and expenses have been listed on the statement, the difference of the two is then taken at the bottom for the net income, or net loss, whichever applies to the situation at hand...
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