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| − | An ''''Income Statement''''' is a financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.
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| − | The income statement is the one of the three major financial statements. The other two are the [[Balance Sheet|Balance Sheet]] and the [[Cash Flow Statement|Cash Flow Statement]]. The income statement is divided into two parts: the operating and non-operating sections.
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| − | The portion of the income statement that deals with operating items is interesting to investors and analysts alike because this section discloses information about revenues and expenses that are a direct result of the regular business operations. For example, if a business creates sports equipment, then the operating items section would talk about the revenues and expenses involved with the production of sports equipment.
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| − | The non-operating items section discloses revenue and expense information about activities that are not tied directly to a company's regular operations. For example, if the sport equipment company sold a factory and some old plant equipment, then this information would be in the non-operating items section.
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| | [[Category:finance]] | | [[Category:finance]] |
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