What is an income statement in Business?

[Holicent]

An income statement is a financial report that shows a company's revenues, costs, and profits over a specific period of time. An income statement also shows how much money a company made or lost during the period.

The income statement is one of three key financial statements that every business must produce. Others are the cash flow statement and balance sheet. Together, they help investors determine whether a company has enough reserves to meet its financial obligations during the year and which assets are being depreciated or amortized.

The income statement shows how much money was earned by an organization over a specific period for each accounting period. It also shows what expenses were incurred by the company during the accounting period, and how much profit was generated through those expenses. An income statement can be prepared by a corporation or individual. It's used by investors and lenders in determining whether businesses are profitable or not.

 

[Jasz]

An income statement is a financial statement that shows the income of a business for a period, usually a year. It shows revenues and expenses so you can see how much money you made and how much you spent during the year.

The income statement is a financial statement that measures the financial performance of a business. The income statement is usually one of the first documents that a firm produces when it goes public or when a company is acquired by another company.

The income statement shows revenues (the amount of money coming in through sales) minus expenses (the amount of money going out through costs). The result is called net income, or bottom line.

The income statement is also called a profit and loss statement or P&L for short.

The income statement shows net (profit) or (loss) for every month in the period under review. The income statement should also show net profit or loss from all operations during the review period.

It may be called "Income Statement" but it can also be called:

Profit & Loss Account

Profit & Loss Statement , etc