Which of these items typically appears at the top of an income statement?

The item that typically appears at the top of an income statement is revenue or sales. This is because the income statement is structured to show a company's financial performance over a specific period, starting with the total amount of money generated from sales or revenue before any expenses are deducted.

Revenue serves as the foundation for assessing the company's profitability, as all subsequent expenses—including cost of goods sold, operating expenses, and taxes—are deducted from this figure to arrive at net profit or loss. Therefore, the income statement begins with revenue to provide a clear view of the primary source of earnings for the business, allowing stakeholders to analyze how effectively the company converts sales into profit.

Additionally, items like cost of goods sold, net profit or loss, and total assets are important components of financial reporting but are presented later in the income statement or in other financial statements.