What Is an Earnings Statement?

The income statement is also referred to as the "income statement" and "profit and loss account". Accounting statements that reflect income, expenses and net income for the accounting period. The income statement is prepared based on the principle of matching income to expenses, that is, to match the operating income of a certain accounting period with the expenses (including extraordinary items and non-operating net profit and loss) that should be amortized by the current income to determine the current period correctly. Net income. The order of items in the income statement varies depending on the report format used. Common income statement formats are multi-step and single-step. The multi-step income statement is to calculate the gross sales profit by subtracting the cost of sales from the sales revenue; and then subtract the operating expenses from the gross sales profit to obtain the net operating income. Use the net operating income to add non-operating income before deducting non-operating losses before tax. Net income, the net income is finally calculated by subtracting the income tax from the net income before tax. The single-step income statement divides all the items in the current period into two parts, income and expenses. The sum of various incomes minus all expenses is calculated once to obtain net income. ^[1]

Income Statement

Right!

The income statement is also referred to as the "income statement" and "profit and loss account". Accounting statements that reflect income, expenses and net income for the accounting period. The income statement is prepared based on the principle of matching income to expenses, that is, to match the operating income of a certain accounting period with the expenses (including extraordinary items and non-operating net profit and loss) that should be amortized by the current income to determine the current period correctly. Net income. The order of items in the income statement varies depending on the report format used. Common income statement formats are multi-step and single-step. The multi-step income statement is to calculate the gross sales profit by subtracting the cost of sales from the sales revenue; then subtract the operating expenses from the gross sales profit to obtain the net operating income, and use the net operating income to add non-operating income before deducting non-operating losses before tax Net income, the net income is finally calculated by subtracting the income tax from the net income before tax. The single-step income statement divides all the items in the current period into two parts, income and expenses. The sum of various incomes minus all expenses is calculated once to obtain net income. ^[1]

Income statement

Identities in the income statement: Net income (or profit) = total revenue-total expenditure