Income statement This is a financial statement that shows the net income earned, or net loss suffered by a company, through reporting all the revenues earned, and expenses incurred, by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses. Sales section Sales section of the income statement computes the net sales of the company during the accounting period. To prepare: Sales section of the income Statement of N Company.

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Chapter 5, Problem 8BE

To determine

Income statement

This is a financial statement that shows the net income earned, or net loss suffered by a company, through reporting all the revenues earned, and expenses incurred, by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

Sales section

Sales section of the income statement computes the net sales of the company during the accounting period.

To prepare: Sales section of the income Statement of N Company.

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