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Why is a profit and loss account called an income statement?

The nominal accounts together form the Statement of Profit or Loss, also referred to as the Income Statement. Revenue (or income) is presented first, with cost of sales, operating expense, general, sales and administrative expense, and other income and expense in sections below total revenues. Subtotals at cost of sales show gross margin; at operating expense it shows operating profit (loss); and at the bottom of the report the total reflects net income (loss).

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