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|The Income Statement is a
record of all transactions that affect profitability during a particular
period of time (e.g., 1/1/00 - 12/31/01). Another way of looking at
the income statement is to think of it as a person’s monthly wages
less monthly bills (paid or owed).
Example: $2,000 wages - $1,500 bills paid (or owed) = $500 net profit.