Glossary definition

What is an income statement?

The income statement is one of the primary financial statements. It measures a company’s performance over a specific accounting period (e.g. month, quarter, or year). If the net amount of revenues/gains compared to expenses/losses is positive, the profit and loss statement is labeled as net income. If the net amount is negative, there is a net loss. It is also known as the profit and loss statement (P&L statement).

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