Income Statement

A mandatory component of a company’s Financial Statement(s) that summarizes the revenues, costs, and expenses incurred over a specified period of time. It shows net income as a result of these calculations, but does not reflect the actual movement of cash in and out of the business over the period. May also be known as a Profit and Loss Statement (or P&L Statement).

The Income Statement enables investors to determine whether the company made or lost money over a certain period. It reflects a period of time, in contrast to the Balance Sheet, which shows a snapshot of a particular time.

See also Balance Sheet and Financial Statement(s).