Income Statement Definition Of Terms

The income statement is one of the main four financial statements that are issued by companies.

Income statement definition of terms. Assessee section 2 7 assessee means a person by whom any tax or any other sum of money is payable under this act and includes every person in respect of whom any proceedings under this act have been taken for the. Balance sheet income statement statement of owner s equity and statement. What is an income statement. Also sometimes called a net income statement or a statement of earnings the income statement is one of the three most important financial statements in financial accounting.

The income statement also called a profit and loss statement is a report made by company management that shows the revenue expenses and net income or loss for a period. One of the main financial statements along with the balance sheet the statement of cash flows and the statement of stockholders equity. It shows your revenue minus your expenses and losses. The basic objective of the income statement is to describe the income achieved by the reporting entity during a specific accounting period.

Read business terms glossary by. Experience has shown that the rules for measuring the amount of income are complex and far from unanimously accepted among users and preparers. The coca cola company income statement 2017 extract. Definition of the income statement.

The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. Ifrs or us gaap. Income statements are 2 types single step income statement and multiple step income statement for finding net profit or loss an accounting period.

An income statement is a financial statement that shows you how profitable your business was over a given reporting period. The income statement is also referred to as the profit and loss statement p l statement of income and the statement of operations. Defintions basic terms of income tax. The income statement is prepared according to one of the following frameworks.

These frameworks provide the rules and guidelines upon which the statement is prepared. An income statement is one of the three major financial statements that reports a company s financial performance over a specific accounting period.