What is Income statement?
Income statement (Definition)
An income statement displays a business’ revenue and expenses and shows whether the business has made or lost money during a period of time (monthly, quarterly, annual). Banks and other financial institutions can use it to determine the creditworthiness of a company and it includes revenue, expenses, profits, and losses. It is one of three key financial statements used to report a company's finances, with the other two are the cash flow and balance sheet.
An income statement helps businesses assess their revenue growth and savings to see what is required to generate a profit for the company. It also allows any problems to be noted and resolved before they cause major issues.