The Income Statement Reports Revenues And Expenses For A Period Of Time Such As A Year Or A Month

Define what the income statement reports by completing the following sentence.

The income statement reports revenues and expenses for a period of time such as a year or a month. The income statement describes a company s assets revenues and expenses liabilities along with the resulting net income or loss over a period of time due to earnings related activities. The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. The income statement sometimes called an earnings statement or profit and loss statement reports the profitability of a business organization for a stated period of time. 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 reports revenues and expenses and the resulting net income. It s one of the three major financial statements that small businesses prepare to report on their financial performance along with the balance sheet and the cash flow statement. Reports how much of the firms earnings were retained in the business rather than paid out in dividends. The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the.

The balance sheet reports assets liabilities and stockholders equity. Summarizes the firms revenues and expenses over an accounting period. 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. Reports the impact of a firms operating investing and financing activities on cash flows over an accounting period.

The income statement comes in two forms multi step and single step. An income statement reports a business s revenues expenses and overall profit or loss for a specific period of time.