Income Statement Definition & Application Wiki

Income Statement Definition & Application Wiki

Last Updated by WikiWealth

Short Definition

IS = Income Statement

An Income Statement, also called a Profit and Loss Statement (P&L), is a financial statement for companies that indicates how Revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.

Long Definition

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Source: http://en.wikipedia.org/wiki/Income_statement