You read an income statement from the top line to the bottom line. Every step of the income statement reports the deduction of expenditure. The income statement also describes variations in assets and liabilities as well, so that if there is a revenue increase, it is either because there has been an increase in assets or a decrease in a company’s liabilities. If there’s been an increase in the expenditure line, it’s because there’s been either a decrease in assets or an increase in liabilities.

Net worth is also referred to as owners’ equity in the business. They’re not precisely exchangeable. Net worth says the total of assets less the liabilities. Owners’ equity refers to who owns the assets after the liabilities are satisfied