Income Statement Role Definition

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.

Income statement role definition. An income statement is one of the three major financial statements that reports a company s financial performance over a specific accounting period. The income statement contains several subtotals that can assist in. Income statement is the member of the financial statements that tells fans whether or not a company made a profit or incurred a loss in an accounting period. In everyday terms the income.

The income statement is a little bit different from the balance sheet. Balance sheet income statement statement of owner s equity and statement. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. The statement quantifies the amount of revenue generated and expenses incurred by an organization during a reporting period as well as any resulting net profit or loss the income statement is an essential part of the financial statements that an organization releases.

The balance sheet is also provided the company s financial performance but on a particular date. The income statement presents the financial results of a business for a stated period of time. Income statement by function is a critical report for the management and board of directors in making right decisions as compared to the income statement by nature where everything is grouped together to calculate the net profit figure. What is the income statement.

The purpose of the income statement is to show the reader how much profit or loss an organization generated during a reporting period this information is more valuable when income statements from several consecutive periods are grouped together so that trends in the different revenue and expense line items can be viewed.