Accounting Period Definition 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 company s financial performance over a specific accounting.

Accounting period definition income statement. A regular 12 month accounting period does not necessarily have to begin on the first day of the year and end on the last. 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 profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities.

Income statement shows net profit or net loss arising out of activities of a particular accounting period of any business organization. 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. The income statement is one of three statements. When period costs are expensed they show up on the income statement income 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 income statement presents the financial results of a business for a stated period of time. The period of time that is covered by the income statement and other financial statements is called the accounting period. A january income statement for example would show all the income and expenses for the month. Income statements are 2 types single step income statement and multiple step income.

The income statement shows income and expenses for a specific period of time.