An Income Statement presents the results of a company’s operations for a given reporting period. It is called flow statement or period of time statement. This statement presents the Revenues earned and Expenses incurred by an entity during a specific time period. Resultant figure known as Net Income/Profit (excess of revenue over expenses) or Net Loss (excess of expenses over revenue. Accounting period or year is the period of time covered by an Income Statement. It is usually one year. It can either be calendar year (Jan to Dec) or fiscal year (July to June). This statement includes revenue, expenses and net profit or loss which carry forward to statement of owner equity.
>> Practice through Income Statement Format.