Income statement
Revenue to net income — accrual-based performance over a period.
Income statement
| Concept | Explanation | |---|---| | Revenue | Value recognized from ordinary business activities. | | Cost of revenue | Direct costs associated with delivering products or services. | | Gross profit | Revenue minus cost of revenue. | | Operating expenses | Costs such as research, sales, administration, and depreciation. | | Operating income | Profit from core operations before interest and taxes. | | Net income | Profit after recognized expenses, interest, and taxes. | | Earnings per share | Net income allocated across the weighted-average share count. |
The income statement is accrual-based. Revenue and expenses may be recognized before or after the related cash movement.