Income Statement Company Definition

The income statement is an essential part of the financial statements that an organization releases.

Income statement company definition. The other parts of the financial statements are the balance sheet and statement of cash flows. Balance sheet income statement statement of owner s equity and statement. The income statement is one of a company s core financial statements that shows their profit and loss profit and loss statement p l a profit and loss statement p l or income statement or statement of operations is a financial report that provides a summary of a over a period of time. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities.

The income statement may be presented by itself on a single page or it may be combined with other comprehensive income information. It is a financial statement that also reflect the revenues and expenses of a company over a particular time. An income statement is a financial statement that states the losses incurred and profits accrued by a company over a period of time. The income statement is one of the main four financial statements that are issued by companies.

An income statement is also called a profit and loss account or revenue and expense statement. Also called profit and loss statement an income statement is a financial statement that shows sales cost of sales gross margin operating expenses and profits or losses. Gross margin is sales less cost of sales and profit or loss is gross margin less operating expenses and taxes. 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 simply put it portrays the final result of the company s operations over a period.