True or false Income statement profit and loss statement sho

True or false? Income statement: profit and loss statement shows company\'s sales, cost of sales, and profit or loss for a period of time.

Solution

True.

Income statement determines the net income or loss which is calculated by deducting expenses from total revenue. It includes all the revenue whether it is sales revenue, rent revenue and all the expenses such as cost of sales, advertising expense, administrative expenses, etc.