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    Importance of the Income Statement

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    What is the importance of the Income Statement? What are its major limitations? Explain with an example.

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    Importance of the Income Statement
    What is the importance of the Income Statement? What are its major limitations? Explain with an example.

    An income statement is a summary of a company's profit or loss during any one given period of time, such as a month, three months, or one year. The income statement records all revenues for a business during this given period, as well as the operating expenses for the business. (Business town, 2010)

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