Accounting1 Chapter 5 (The Income Statement)

Shows if a business made a profit or loss and if it's profitable. As well as the expense/Revenue details

An increase in equity

The cost associated with producing revenue

A decrease in equity (usually bank)

The sum of the equity figure from the beginning of the fiscal period plus the owner's capital

Companies must use fiscal periods of equal length when making financial progress

Expenses must be recorded in the period in which the revenue is recognized