Glossary

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Income Statement

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An income statement is a financial statement that summarizes a company’s revenues, expenses, and profits (or losses) over a specific period of time, such as a quarter or a year. The income statement provides valuable insights into a company’s financial performance and is an essential tool for assessing its profitability. The income statement is a key tool for assessing a company’s financial performance. It helps stakeholders, such as management and investors, understand how well the company is generating profits. An income statement provides valuable information which is often used to facilitate decision-making by management, investor analysis, lending and creditworthiness assessments, comparative analysis between companies, as well as for budgeting and forecasting excercises.

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