What is income statement used for?

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What makes an income statement important? What kind of information can I get from an income statement and what are the used of an income statement?

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score 0 · Answer 1 · 2012-12-02T18:56:03+00:00

The income statement shows how the performance is doing in terms of revenue generations, expenses incurred. It is useful for the users because it can show the profit margins, the ability of the company to generate profits and the ability of the company to control its costs which is directly related to the profitability of the company.