ABSTRACT
An income statement measures performance over a period of time. The statements present the financial transactions that took place over each quarter and the year as a whole. Generally Accepted Accounting Principles, or GAAP (see tip #287), provide guidelines for the determination of income, revenue, and expenses. The relationship among the three is: https://www.w3.org/1998/Math/MathML"> Net income = Revenues − Expenses https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780080510781/349fd38e-1125-4f2f-aeb7-f46e94419f14/content/eq15_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
