Income Statement Preparation for Ernst Consulting

Income Statement

A financial statement that shows a company's revenues and expenses during a specific period, providing the net income or loss for that period.

Expenses

The costs incurred by a company to generate revenues, including salaries, rent, supplies, and other operating expenses.

Revenues

The income a company receives from its normal business activities, typically from selling goods and services.

Owner's Equity

The owner's residual interest in the business's assets after deducting liabilities, representing the owner's claim on the company's assets.

Net Income

The total revenue minus total expenses, indicating whether a company made a profit or incurred a loss during a specific period.