Income Statement Shows Results

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.

Income statement shows results. While a balance sheet provides the snapshot of a company s financials as of a particular date the income statement reports income through a particular time period and its heading indicates the. The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. A january income statement for example would show all the income and expenses for the month. This could be monthly quarterly semi annually or annually.

The income statement s primary purpose is to show the financial performance of a. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. An income statement is a company s financial statement that indicates how the revenue money received from the sale of products and services before expenses are taken out also known as the top line is transformed into the net income the result after all revenues and expenses have been accounted for also known as net profit or the bottom line. It would also show the net income or loss at the end of january.

Financial presentations often include this statement as a spreadsheet or table of numbers on a slide that overwhelms the executives in the audience leading to numerous questions. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. Not surprisingly the income statement is also known as the profit and loss statement. A comparative income statement shows the operating results for several accounting periods.

These statements show the income for the period and the different expenses resulting in a bottom line net income. The income statement can either be prepared in report format or account format. It helps the reader of such a statement to compare the results over the different periods for better understanding and also for detailed analysis of variation of line wise items of income statement. The income statement comes in two forms multi step and single step.

The income statement shows income and expenses for a specific period of time. The income statement also called the profit and loss statement is a report that shows the income expenses and resulting profits or losses of a company during a specific time period. Major parameters included in income statement.