Income Statement Top Line Means

Net income net income net income is a key line item not only in the income statement but in all three core financial statements.

Income statement top line means. This is a very important number in the income statement also known as earning before tax. A company s bottom line is its net income or the bottom figure on a company s income statement. More specifically the bottom line is a company s income after all expenses have been deducted. Top line refers to the gross figures reported by a company which is primarily revenues or sales.

An income statement is a company s financial statement that indicates how the revenue money received from the sale of products and services before expenses are taken out also known as the top line is transformed into the net income the result after all revenues and expenses have been accounted for also known as net profit or the bottom line. If you are familiar with how to analyze an income statement you may recall that. That means the total revenue of your company before income taxes have been subtracted. The term top line comes from the fact that a company reports its revenue numbers at the top of its income statement.

The top line is a pure gross sales number showing how much revenue the. What is income statement. Income statement top line vs. The term top line derives its name from the fact that it is the first item on an income statement.

Along with the balance sheet cash flow statement and the statement of changes in owners equity the income statement is also one of the essential means of financial reporting. As you may understood this is a tax imposed on income generated by your company within your jurisdiction by the government. The income statement is one of the important primary financial statements provided by organizations. While it is arrived at through the income statement the net profit is also used in both the balance sheet and the cash flow statement.

Line 9 income tax. Bottom line line items on an income statement. As you continue scanning down the income statement you ll see entries for different types of. Is calculated by deducting income taxes from pre tax income.