A quick reading of Maxidrive's income statement (Exhibit 1.3) indicates a great deal about its purpose and content. The heading identifies the name of the entity, the title of the report, and the unit of measure used in the statement. Unlike the balance sheet, however, which reports as of a certain date, the income statement reports for a specified period of time (for the year ended December 31, 2009). The time period covered by the financial statements (one year in this case) is called an accounting period. Notice that Maxidrive's income statement has three major captions, revenues, expenses, and net income. The income statement equation that describes their relationship is