Small Business Dictionary

Income Statement

An Income Statement, also known as a Profit and Loss Statement, Earnings Statement, or Operating Statement, is an accounting term for a financial statement issued by a business detailing revenue and expenses (such as cost of goods sold, payroll, leases) and the resulting amount of profit or loss. Income Statements are for a specific period of time, such as three, six or 12 months. An Income Statement differs from a Balance Sheet.