Q. Explain about income statement?
The income statement, sometimes called as an earnings statement that reports the profitability of a business organization for a stated period of time. In accounting we calculate profitability for a period such like a month or year by comparing the revenues earned with the expenses incurred to produce these revenues. Revenues are the inflows of assets such like cash resulting from the sale of products or the rendering of services to customers. We compute revenues by the prices agreed on in the exchanges in which a business delivers goods or renders services. Expenses are the costs acquired to produce revenues. Expenses are calculated by the assets surrendered or consumed in serving customers. If the revenues of a period go beyond the expenses of the same period, net income results therefore
Net income = Revenues - Expenses
Net income is habitually called the earnings of the company. When expenses go beyond revenues, the business has a net loss and it has managed unprofitably.
This corporation carry out courier delivery services of documents and packages in San Diego in the state of California USA.