Income Statement
A financial statement, also called a statement of profit and loss, that compares total revenue to total costs over a period to determine net profit or loss.
It measures a stretch of time, and a typical statement prints several periods side by side so each line can be judged against the same line from the period before.
The income statement is the movie; the balance sheet is the photograph.
Often Confused With
- Balance Sheet
- An income statement covers a period; a balance sheet reports one instant.
Taught In
See Also
3.6.A.1 · 3.6.A.2