What is an 'Income Statement'?

A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Income Statement An income statement is a financial statement that reports a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period. Breaking it Down: Also known as the profit and loss statement or statement of revenue and expense, the income statement is one of... Read More Related to "Income Statement" What is the difference between an income statement and a balance sheet? The balance sheet illustrates a company's book value, and the income statement shows how assets and liabilities are used. Read More Look For These Red Flags In The Income Statement Companies can overstate their revenues and understate their losses to boost investor confidence. Learn how to spot the these red flags in income statements. Read More 12 Things You Need to Know About Financial Statements Discover how to keep score of companies to increase your chances of choosing a winner. Read More Related Definitions Non-Operating Expense An expense incurred by activities not relating to the core operations of the business. Read More Profit and Loss Statement (P&L) A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually a fiscal quarter or year. Read More Continuing Operations Continuing operations is a business term used to describe the segments of a company's business that it considers to be normal, and expects to operate in for the foreseeable future. Read More Bottom Line Refers to a company's net earnings, net income or earnings per share (EPS). Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: