Question

an income statement communicates information regarding revenue and expenses​

Answer 1

The income statement reports revenues and expenses and the resulting net income. This financial statement explains how a company's cash balance changed during the accounting period.

Answer 2

Yes, the income statement of a company communicates information regarding revenue and expenses.

An Income statement is one of the financial statements prepared by a company. The income statement gives information about a company's revenues and its expenditures. The income statement is also prepared to ascertain the profit or loss of the company in a period time. Through income statements, decision-makers of the company can decide whether they should cut the costs to cover the loss and to increase profits or whether the current situation is earning enough profits.