Intermediate Accounting 4 The Income Statement and Income Recognition Elements of the income statement Expenses Expenses are outflows of assets of a company or incurrence of liabilities during a period from delivering or producing goods, rendering services or carrying out other activities that are the company s ongoing major or central operationsElements of the Income Statement — Expenses Expenses are outflows of assets of a company or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that are the company’s ongoing major or central operations. Intermediate Accounting 4 The Income Statement and Income Recognition