Income statement accounts are used to report a company’s financial performance over a certain period of time. These accounts show the total revenue generated from all sources, such as sales, investments, and other activities. They also detail the expenses a business incurs during the same period, such as cost of goods sold, wages, and general administrative costs. Together, the difference between these revenue and expenses is known as net income or profit. With an income statement account, business owners and investors can gauge how well their company is doing financially by comparing it with past records and industry standards.