income statement (redirected from Statement of Financial Performance)

Income statement (statement of operations)

A statement showing the revenues, expenses, and income (the difference between revenues and expenses) of a corporation over some period of time.

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income statement

A business financial statement that lists revenues, expenses, and net income throughout a given period. Because of the various methods used to record transactions, the dollar values shown on an income statement often can be misleading. Also called earnings report, earnings statement, operating statement, profit and loss statement. See also consolidated income statement.

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Income statement. An income statement, also called a profit and loss statement, shows the revenues from business operations, expenses of operating the business, and the resulting net profit or loss of a company over a specific period of time.

In assessing the overall financial condition of a company, you'll want to look at the income statement and the balance sheet together, as the income statement captures the company's operating performance and the balance sheet shows its net worth.

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income statement

See financial statement.

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Income Statement

What Does Income Statement Mean?

A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by summarizing how the business incurs its revenues and expenses through both operating and nonoperating activities. It also shows the net profit or loss incurred over a specific accounting period, typically a fiscal quarter or year. Also referred to as the profit and loss statement or statement of revenue and expense.

Investopedia explains Income Statement

The income statement is one of the three major financial statements. The other two are the balance sheet and the statement of cash flows. The income statement is divided into two parts: the operating and nonoperating sections. The portion of the income statement that deals with operating items is interesting to investors and analysts alike because this section discloses information about revenues and expenses that are a direct result of the regular business operations. For example, if a business creates sports equipment, the operating items section will talk about the revenues and expenses involved in the production of sports equipment. The nonoperating items section discloses revenue and expense information about activities that are not tied directly to a company's regular operations. For example, if the sport equipment company sold a factory and some old plant equipment, this information would be in the nonoperating items section.

Related Terms:
• Accrual Accounting
• Generally Accepted Accounting Principles—GAAP
• Net Income
• Profit Margin
• Revenue