Accounting and Finance for Lawyers

Income Statement

An income statement is a summary of revenues and expenses.

Revenue

Revenue is a generation of equity from selling goods or rendering services in one's line of business.

Expense

Expenses are costs incurred by a business without receiving an equivalent asset in order to generate its revenue.

Revenues are decreased by numbers in the left column and increased by numbers in the right.

Expenses are increased by numbers in the left column and decreased by numbers in the right.