Peerless Define An Income Statement

It shows your revenue minus your expenses and losses.

Define an income statement. An income statement is a financial statement detailing a companys revenue expenses gains and losses for a specific period of time that is submitted to the Securities and Exchange Commission SEC. The income statement along with balance sheet and cash flow statement helps you understand the financial health of your business. The income statement is one of the five financial statements that report and present an entitys financial transactions or performance including revenues expenses net profit or loss and other PL Items for a specific period of time.

A classified income statement is a financial report showing revenues expenses and profits for which there are subtotals of the various revenue and expense classifications. Income statement definition an accounting of income and expenses that indicates a firms net profit or loss over a certain period of time usually one year. It indicates how the revenues are transformed into the net income.

It shows the profit or loss made by the business which is the difference between the firms total income and its total costs. The income statement is a historical record of the trading of a business over a specific period normally one year. It also shows whether a company is making profit or loss for a given period.

The purpose of the income statement is to show the reader how much profit or loss an organization generated during a reporting period. This is also known as the statement of financial performance because it shows how the entity financially performed during the period that the. Non-operating expenses and losses.

Income statement definition One of the main financial statements along with the balance sheet the statement of cash flows and the statement of stockholders equity. The financial statement that represents the income and expenses of the company for a particular or given period is called an income statement. An income statement is one of the three along with balance sheet and statement of cash flows major financial statements that reports a companys financial performance over a specific accounting.

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. What Is an Income Statement. An income statement is a financial statement that shows you how profitable your business was over a given reporting period.