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What is in an income statement?

An income statement shows a companys revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (PL) statement or an earnings statement. It shows your: revenue from selling products or services. expenses to generate the revenue and manage your business.

What are the three parts of an income statement?

Revenues, Expenses, and Profit Each of the three main elements of the income statement is described below.

What is the income statement formula?

The basic formula for an income statement is Revenues Expenses = Net Income. This simple equation shows whether the company is profitable. If revenues are greater than expenses, the business is profitable.

What is income statement also known as?

An income statement (also known as a profit and loss or PL statement) documents a business revenue and expenses. Along with a balance sheet, cash flow statement and statement of owners equity, its one of the four major financial statements that a business uses to track overall financial health.