Income statement o Income: Revenues (or promises of revenues) produced by a company usually through sales to others n Expenses: The costs associated with the generation of revenues n Net Income: The difference created when expenses are subtracted from the corresponding incomeIncome Statement Income: Revenues (or promises of revenues) produced by a company usually through sales to others. Expenses: The costs associated with the generation of revenues. Net Income: The difference created when expenses are subtracted from the corresponding income