INCOME STATEMENT

The revenue and expense shown in the income statement are taken directly from the company adjusted trial balance .the income statement of show that revenue earned exceeded the expense of the month producing a net income our measurement of net income is not absolutely accurate or precise because of the assumption and estimate in the accounting process. A income statement has certain limitation that the amount shown for depreciation are base upon estimate of the useful office equipment the income statement includes only those events which have been evidenced by business transaction .The income statement include earnings statement of operations and profit and loss statement income statement is by far the most popular term for this important financial statement.