A summary of a management's performance as reflected in the profitability (or lack of it) of an organization over a certain period. It itemizes the revenues and expenses of past that led to the current profit or loss, and indicates what may be done to improve the results.
In contrast to a balance sheet, an income statement depicts what happened over a month, quarter, or year. It is based on a fundamental accounting equation (Income = Revenue - Expenses) and shows the rate at which the owners equity is changing for better or worse. Along with balance sheet and cash flow statement it forms the basic set of financial information required to manage an organization. Also called earnings report, operating statement, or profit and loss account.
Use income statement in a sentence
My manager was worried because he would be getting his income statement today and see how he was doing for the company.
When filing your taxes you should break down your income statement so that you know the right numbers to report.
The income statement was a document that we mentioned in the meeting as we had already discussed the cash flow statement.