Income Statement Reports What

An income statement is one of the three major financial statements that reports a company s financial performance over a specific accounting period.

Income statement reports what. An income statement or profit and loss account also referred to as a profit and loss statement p l statement of profit or loss revenue statement statement of financial performance earnings statement statement of earnings operating statement or statement of operations is one of the financial statements of a company and shows the company s revenues and expenses during a particular period. Not surprisingly the income statement is also known as the profit and loss 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. Interest accruals are hitting the income statement within the core banking system throughout the month.

The other major financial statements are the balance sheet statement of cash flows statement of comprehensive income and the statement of stockholders equity the income statement is sometimes referred to as the profit and loss statement p l statement of operations statement of. There may be elements of the income statement such as fixed asset depreciation and cost allocations that only happen at a certain point in the month. The income statement is a report showing the profit or loss for a business during a period as well as the incomes and expenses that resulted in this overall profit or loss. The profit or loss is determined by taking all revenues and subtracting.

What is the income statement. The income statement or profit and loss report is the easiest to understand it lists only the income and expense accounts and their balances. The income statement can either be prepared in report format or account format. To prepare an income statement generate a trial balance report calculate your revenue determine the cost of goods sold calculate the gross margin include operating expenses calculate your income include income taxes calculate net income and lastly finalize your income statement with business details and the reporting period.

The income statement totals the debits and credits to determine net income before taxes the income statement can be run at any time during the fiscal year to show a company s profitability. Income statement and balance sheet overview. 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.