The Income Statement Definition

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

The income statement definition. It is a financial statement that also reflect the revenues and expenses of a company over a particular time. Income statement definition an accounting of income and expenses that indicates a firm s net profit or loss over a certain period of time usually one year. In particular this statement shows how well the company was able to profit in the period covered in the statement. Types of the income statement are discussed.

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. The income statement may be presented by itself on a single page or it may be combined with other comprehensive income information. 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 the financial account that explains the trading performance of a business in terms of the achieved profit or loss.

Balance sheet income statement statement of owner s equity. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. An income statement is one of the three along with balance sheet and statement of cash flows major financial statements that reports a company s financial performance over a specific accounting. The income statement is used as a source of information for shareholders analysts and creditors to help make determinations as to the company s overall fiscal condition.