An income statement (also known as a profit and loss statement ) presents a company’s revenues and expenses over a specific time period and is used to show profitability.

Its main components include:

Gross Profit : Revenue minus cost of goods sold (COGS)

Operating Income : Gross profit minus operating expenses

Operating Expenses : Costs related to daily business operations, such as wages, rent, utilities

Assets, liabilities, and cash are part of the balance sheet , not the income statement.