IT Financials Glossary

Income statement

Posted in Financial statements by mgentle on August 26, 2010

Income statement: a company financial statement that shows the difference between revenue and costs – in other words, income. Also known as the P&L. The income statement shows the financial performance of the company, in other words, whether it made or lost money over a specific period.

Note that the income statement represents profit and loss over a specific period (usually a month), unlike the balance sheet, which is a snapshot of the company’s value at a point in time.

An analogy would be one’s personal income statement, which would list one’s revenue (salary and other earnings) and expenses (car payments, restaurant bills, alimony …).

The most common format of the income statement in the corporate world is EBITDA.

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  1. Balance sheet said, on April 5, 2011 at 20:07

    […] the company is performing in terms of revenue and expenses each month – that is the role of the Income Statement or P&L (of which the analogy would be your monthly salary and living expenses). Filed Under: […]

  2. Costs said, on April 7, 2011 at 00:11

    […] the balance sheet the year in which the asset is acquired, and are depreciated as expenses in the P&L during its useful life. Capex in essence pushes out expenditure incurred today to subsequent years, […]


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