Sources of finance
An income statement presents the results of a company's operations for a given period—a quarter, a year, etc. The income statement presents a summary of the revenues, gains, expenses, losses, and net income or net loss of an entity for the period. This statement is similar to a moving picture of the entity's operations during the time period specified. Along with the balance sheet, the statement of cash flows, and the statement of changes in owners' equity, the income statement is one of the primary means of financial reporting. The key item listed on the income statement is the net income or loss.
An income statement or profit and loss account , statement of profit or loss, revenue statement, statement of financial performance, earnings statement, operating statement, or statement of operations is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income . It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-off sand taxes.The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.