Presents the financial results of a business for a stated period of time. The statement quantifies the amount of revenue generated and expenses incurred by an organization during a reporting period, as well as any resulting net profit or loss.
Why is Income Statement important?
The income statement is an essential part of the financial statements that an organization releases. The other important documents are the balance sheet, the cash flow statement and the statement of shareholder's equity. The income statement is used to give a summary of the company's revenues and expenses over a specific period of time. This information is then used to determine the total profit or loss to the company over the stated accounting period.