Income Statement
A financial statement showing revenues, expenses, and resulting profit or loss over a specific period, revealing how a business generates earnings or incurs losses.
Income Statement
A financial statement that shows a company’s revenues, expenses, and net income or loss over a specific period. Also called a profit and loss statement, it measures a company’s financial performance over time.
For example, a restaurant chain’s quarterly income statement might show $2 million in revenue, $1.2 million in cost of goods sold, $500,000 in operating expenses, and $300,000 in net income, providing insight into its profitability and operational efficiency.
Income statements help stakeholders evaluate a business’s ability to generate profit, manage expenses, and create value. They reveal performance trends when compared across multiple periods and serve as a foundation for financial forecasting and business planning.