The Essentials of Finance and Accounting for Nonfinancial Managers, 3rd Edition

CHAPTER TWO

The Income Statement

The income statement, often called a statement of operations or a profit and loss statement (P&L), describes the performance of the company over a period of time, usually a month, a quarter, or a year. This information measures the company’s achievement (revenue) and the resources (expenses) that were expended in order to produce that achievement. The income statement is summarized as follows:

The difference between revenues achieved and expenses incurred is called profit or net income.

The following paragraphs ...