Accounting Demystified

Income Statement

The Income Statement lists the company's revenues and expenses and gives the difference between them. This difference is called net income. For the most part, revenues arise from selling goods or services. Expenses are the costs involved in operating the business.

Some examples of accounts that are classified as revenues and expenses are:

Revenues	Expenses
Sales	Cost of goods sold
Interest income	Salary expense
	Rent expense
	Tax expense
	Interest expense

This is a very short list of the accounts that may be found on the Income Statement. Salary expense is also known as Wage expense or Payroll expense. The names are synonymous and are used interchangeably. It is also common not to use the full title Rent expense, but to call it simply ...