Crash Course Income Statement

The income statement is the presentation of the various receiptsand expenditure incurred by the proprietor or the business orthe firm. It includes two sides, particularly credit and debit andfor a simpler word one that is coming and the other that isgoing. It is focusing on the cash incoming and outgoing. Theultimate result of the statement is revenue deficit. The revenueis the profit or the excess of income over the expenditure.
Thedeficit is the loss which is the excess of expenditure over theincome. The statement is prepared as per guidelines andprinciples reflected in the Accounting Standards issued by ICAI. Any discrepancy is not at all allowed if they do not representthe true and fair view of the financial position of the company. Window dressing performed by the limited company oftenresults into a very strict action by the authorities which includecentral government, high court, and even supreme court.