See Also:
Generally Accepted Accounting Principles (GAAP)
Financial Reporting
Financial Ratios
Balance Sheet
Standard Chart of AccountsIncome Statement Definition
The income statement of a company is a financial statement that shows a company’s revenues and expenses over a period of time. The income statement reports a company’s financial performance over the course of an accounting period, typically a month or quarter. Basically, it starts with the money a company earns, and subtracts out the costs of running the business to get the company’s profit or loss.
The income statement is also called the statement of earnings, profit and loss statement, or P&L statement. It is often divided into two sections: operating and non-operating. The
operating income definition is the revenues and expenses incurred over the course of regular business operations. The non-operating income section shows the revenues and expenses incurred from activities that are not considered regular business operations. There may also be a section for irregular items, consisting of revenues or expenses from abnormal or
nonrecurring activities. The top line of the income statement is the company’s operating revenues. The bottom line is the company’s
net profit or loss.