Income Statement Definition Economics

The income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

Income statement definition economics. 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. Term income statement definition. Balance sheet income statement statement of owner s equity and statement. The income statement is one of the main four financial statements that are issued by companies.

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. This is one of two key financial statements for an entity. The income statement is a historical record of the trading of a business over a specific period normally one year. General dictionary economics corporate.

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. A statement of the revenues expenditures and profit for a business household or government entity over a given period of time an income statement also goes by the names profit and loss statement earnings report and operating statement. An income statement is one of the three major financial statements that reports a company s financial performance over a specific accounting period. Allows shareholders owners to see how the business.