Income Statement Economic Definition

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.

Income statement economic definition. 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 an accounting of income and expenses that indicates a firm s net profit or loss over a certain period of time usually one year. 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. The income statement is one of the main four financial statements that are issued by companies.

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. 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. This is one of two key financial statements for an entity. 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.

Balance sheet income statement statement of owner s equity and statement.