Finance
What is An income statement?
An income statement is a financial report showing a company's revenues, expenses, and resulting profit or loss over a period. Also called a profit-and-loss (P&L) statement, it answers the key question: did the business make money?
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains an income statement.
Key things to understand
- 1It shows revenue, expenses, and profit over a period.
- 2Also called a profit-and-loss (P&L) statement.
- 3It reveals whether a business is profitable.
- 4It's one of the three core financial statements.
Frequently asked questions
- What is an income statement?
- A report of a company's revenues, expenses, and profit or loss over a specific period.
- What's the difference between an income statement and a balance sheet?
- An income statement covers performance over a period; a balance sheet is a snapshot of assets and liabilities at one moment.
- What is the bottom line?
- The net profit or loss at the end of the income statement, after all expenses.