An income statement, also called a profit and loss statement, is a financial statement that shows a company's revenues and expenses over a period of time, resulting in net income or loss.

It typically includes revenue, cost of goods sold, gross profit, operating expenses, operating income, interest, taxes, and net income. The income statement is used to assess profitability, operating efficiency, and performance trends. It is one of the three core financial statements.

Key points

• Shows revenues and expenses over time
• Ends with net income or loss
• Includes gross and operating profit
• One of three core financial statements