What is an income statement?

An income statement is a financial statement that shows a company’s revenues, expenses, and profits over some time, typically one year. It is a measure of the company’s profitability. The income statement is typically divided into four sections: revenue, cost of goods sold, operating expenses, and net income. Revenue is the company’s money from selling its products or services. The cost of goods sold is the cost of the products or services that the company sells.