Also called a profit and loss statement, or a "P&L," an income statement lists the association's income, expenses, and net income (or loss). The net income (or loss) is equal to the association's income minus its expenses.
The income statement is prepared after all adjusting entries are made in the general journal, all journal entries have been posted to the general ledger, the general ledger accounts have been footed to arrive at the period end totals, and an adjusted trial balance has been prepared from the general ledger totals.
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