Income Statement Definition Profit And Loss

The income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

Income statement definition profit and loss. For example if a company has low profit the bottom line of the profit and loss statement shows a net loss. Also known as the profit and loss statement or the statement of revenue and expense the income statement primarily focuses on the company s revenues and expenses during a particular period. As the income statement shows a company s performance and profitability it enables you to understand financial performance. Profit and loss account income statement definition with explanation and format is discussed here.

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. Income statement also known as profit loss account is a report of income expenses and the resulting profit or loss earned during an accounting period. The profit and loss p l statement is a financial statement that summarizes the revenues costs and expenses incurred during a specified period usually a fiscal quarter or year. Using this information a banker creditor or a lender may not provide finance.

Trading and profit and loss account income statement may be prepared either in account form t form or in report form statement form. In other words the statement shows the profitable of a company for a time period.