August 2013
Beginner
578 pages
12h 19m
English
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6. The Income Statement
The income statement summarizes the results of a company’s operations over a period of time. It is also called the profit-and-loss statement, the operating statement, statement of earnings, and other names. It is the financial report that shows the bottom line—net profit after taxes.
The balance sheet shows the company’s financial position at one point in time—say, at the close of business on December 31. The income statement summarizes the financial results of operations over a period of time—say, from January 1 through December 31. The income statement can show the result of operations for a day, a week, a month, a quarter, a year, or any period of time.
The income statement is the financial report most often used by ...
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