Business Management Income Statement Definition

Simply put it portrays the final result of the company s operations over a period.

Business management income statement definition. Income statement or otherwise called as statement of profit and loss is the summary prepared by the company s management reporting the revenues expenses gains and losses for the particular financial year. An income statement is one of the three important financial statements used for reporting a company s financial performance over a specific accounting period with the other two key statements. An income statement profit statement statement shows the profit or loss made by a company over a set period of time. Toll free 1800 425 8859 91 80 68103666.

The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities. An income statement provides information on the financial results of a company s business activities over a period. 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 shows the business has made a gross profit of 320 000 before considering.

The income statement is one of three statements. The income statement is a historical record of the trading. Of all the financial statements income statement is very popular and important. The income statement is a historical record of the trading of a business over a specific period normally one year.

An income statement shows the business financial performance over a given time period e g. Know the details of income statement and its format with example. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time.