From the example
of income statement below, we will focus on the “revenue”, where the money come
into the company. Revenue is the income generated by selling its products or
services.
However, it
is insufficient to tell us that this company is earning or losing money. Then we
will look into the expenses, where the money go out from the company on
material purchasing, employee salaries, depreciation, etc. to maintain the
company operations.
By deducting
the expenses from the revenue, we will obtain the “Profit”, where showing the
company is earning or losing money. This is important when choosing correct
company before investment to be done.
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| Sample of Income Statement from listed company |
good........:)
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