What is an 'Income Statement'?

An income statement is one of the three major financial statements that reports a company's financial performance over a specific accounting period. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| 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" How do the income statement and balance sheet differ? The balance sheet shows a company's total value while the income statement shows whether a company is generating a profit or a loss. 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 Before investing, discover 12 characteristics of financial statements that can help you evaluate companies and increase your chances of choosing a winner. Read More » Related Definitions Non-Operating Expense A non-operating expense is an expense incurred by a business that's unrelated to its core operations. Read More » Profit and Loss Statement (P&L) The profit and loss statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specified period. Read More » Continuing Operations Continuing operations describes 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 The bottom line refers to a company's net earnings, net profit, net income or earnings per share (EPS). Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy