What is an Income Statement?

in - bound mar - ket - ing

noun

Is a financial statement that represents a company’s financial performance (profit and loss) over a specific period of time. Also known as a profit and loss statement, it is used for reporting a business’ financial performance. The income statement provides useful insights about a company’s operations and performance.

Two groups of people use financial statements – internal and external people. Internal people use the information to analyze their business’ financial status and opportunities to increase revenue, while external people are checking whether the business is profitable and worth investing in.