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Glossary term

Income Statement

Definition

An income statement shows the money your operation brought in and spent over a period, and whether you came out ahead.

Technical definition

An income statement reports revenue, expenses, and resulting net income or loss over a defined accounting period.

Why it matters

It shows profitability over time, which helps lenders judge whether an operation generates the earnings to support new debt.

Example

An annual income statement might show crop sales as revenue and inputs, fuel, and labor as expenses.

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