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Topic: Income statement

Related Topics

Net income

Cost of goods sold

Revenue

Income

Cash flow statement

Expense

Financial statements

Rate of return on investment

Financial accountancy

Debit

Balance sheet

List of accounting topics

Shareholder Equity

Profit and loss account

Normal balance

	Term definition: Income Statement
		By combining these elements, the income statement illustrates just how much your company makes or loses during the year by subtracting cost of goods and expenses from revenue to arrive at a net result, which is either a profit or a loss.
		For a business plan, the income statement should be generated on a monthly basis during the first year, quarterly for the second and annually for the third.
		In the income statement for manufacturers, cost of goods manufactured is added to the finished goods inventory at the beginning of the inventory, resulting in total cost of goods available for sale.
	www.entrepreneur.com /encyclopedia/term/82202.html (972 words)

	Income statement - Wikipedia, the free encyclopedia
		Income statements for companies indicate how Net Revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into Net Income (the result after all revenues and expenses have been accounted for, also known as the "bottom line").
		The purpose of the income statement is to show managers and investors whether or not the company made or lost money during the period being reported.
		Since this forms the last line of the income statement, it is generally referred to the bottom line.
	en.wikipedia.org /wiki/Income_statement (920 words)

	Understanding The Income Statement
		The income statement is one of the three financial statements - the other two are the balance sheet and cash flow statement - with which stock investors need to become familiar.
		Income at the operating level, which is viewed as more reliable, is often used by financial analysts rather than net income as a measure of profitability.
		The positive inter-annual trends in all the income statement components, both income and expense, have lifted the company's profit margins (net income/net sales) from 40% to 44%, which is a highly favorable.
	www.investopedia.com /articles/04/022504.asp (1670 words)

	Income - Wikipedia, the free encyclopedia
		Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business.
		Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
		To calculate a company's income, it starts with its amount of revenue, deducts all costs, including such things as employees' salaries and depreciation, and the number that results is its income, which may be a negative number.
	en.wikipedia.org /wiki/Income (1113 words)

	Association Times \| Understanding Financial Statements – Income Statement
		The income statement shows how the association is performing over a certain period of time.
		Associations should have these statements prepared regularly – monthly or quarterly – and the income statement should be provided on a timely basis, typically no later than 15 to 20 days after the period ends.
		The number of accounts or the detail in the income statement will vary depending on the size of the association and the type of purchases and requests made by the Board of Directors or Owners.
	www.associationtimes.com /articles2003/finincome0503.html (412 words)

	Income Statements - TERMS ON THE INCOME STATEMENT, PRINCIPLES FOR RECOGNIZING REVENUES AND EXPENSES
		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 current view of the income statement is that income should reflect all items of profit and loss recognized during the accounting period, except for a few items that would be entered directly under retained earnings on the balance sheet, notably prior period adjustments (i.e., correction of errors).
		The multiple-step income statement presents operating revenue at the beginning of the statement and nonoperating gains, expenses, and losses near the end of the statement.
	www.referenceforbusiness.com /small/Eq-Inc/Income-Statements.html (1793 words)

	Fundamental Analysis - The Income Statement (Site not responding. Last check: )
		The income statement is the most popular financial statement in an annual or quarterly report.
		The income statement is the "sexy" portion of the financial statements because it includes figures such asrevenue, net income, and earnings per share (EPS).
		In essence, an income statement tells you how much money a company brought in (its revenues), how much it spent (its expenses), and the difference between the two (its profit/loss), over a specified time.
	investrio.investopedia.com /university/fundamentalanalysis/incomestatement.asp (387 words)

	Income Statements: Small Business Accounting
		An income statement, otherwise known as a profit and loss statement, is a summary of a company’s profit or loss during any one given period of time, such as a month, three months, or one year.
		The income statement records all revenues for a business during this given period, as well as the operating expenses for the business.
		Income statements, along with balance sheets, are the most basic elements required by potential lenders, such as banks, investors, and vendors.
	www.businesstown.com /accounting/basic-statements.asp (653 words)

	Your Farm Income Statement - File C3-25 November 2004
		A Farm Income Statement (sometimes called a profit and loss statement) is a summary of income and expenses that occurred during a specified accounting period, usually the calendar year for farmers.
		Income figures from the tax return, however, may not accurately measure the economic performance of the farm.
		Income tax and social security tax payments are considered personal expenses and should not be included in the farm income statement, unless the statement is for a farm corporation.
	www.extension.iastate.edu /agdm/wholefarm/html/c3-25.html (1903 words)

	Resources for the Income Statement
		The statement is dated “For the Year Ended December 31, 2000,” for example, rather than “December 31, 2000.” Net income is the measure of financial performance of a firm accepted by investors and measured according to GAAP.
		The statement reports net income as the net sum of several components: revenues, expenses, gains and losses (the temporary or nominal accounts), along with several subtotals.
		An associated link discusses the statement as a component of the accounting cycle and provides a utility for downloading an Excel spreadsheet template and sample income statement.
	www.swlearning.com /accounting/students/fs_income_reso.htm (1431 words)

	Definitions – Income Statement Summary
		Income incurred from extraordinary items and transactions that are both infrequent and unusual.
		Income of the company that includes all the operations (continuing and discontinued) and all the other income or charges (extraordinary, accounting changes, tax loss carryforward, and other gains and losses).
		The bottom line income after all expenses divided by the common shares outstanding adjusted for the assumed conversion of all potentially dilutive securities.
	www.conocophillips.com /investor/stockinfo/advanced/def_is.htm (590 words)

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		Regular pension contributions under deﬁned contribution schemes are recognised in the income statement in the period in which they arise.
		For civil servants seconded by the Danish state, the Group recognises a pension contribution in the income statement, which is ﬁxed each year by the state and paid to the state on a regular basis.
		In the income statement, the proportionate share of the proﬁt after tax for the year is recognised under the line item Proﬁt from investments in associates after tax.
	www.cph.dk /IBR/UK/aarsregnskab2004/TopMenu/Financials/Accounting+policies/Income+statement.htm (565 words)

	IFRS: Income statement
		The income statement is structured to present the various components of net profit in order to communicate a range of relevant information.
		The following information should be disclosed on the face of the income statement, together with any additional headings or sub-totals as may be required by individual standards or that may be required to give a fair presentation of the entity's performance [IAS1R.81-83].
		The analysis may be presented on the face of the income statement or in the notes.
	www.pwc.com /Extweb/service.nsf/docid/279195E4AF0284E580257137003CF822 (936 words)

	Income statement Information
		Income statements for companies indicate how Net Revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into Net Income (the result after all revenues and expenses have been accounted for, also known as the "bottom line").
		The purpose of the income statement is to show managers and investors whether or not the company made or lost money during the period being reported.
		Hence, part of the skill in understanding income statements and balance sheets is to see through the words.
	www.bookrags.com /wiki/Income_statement (829 words)

	Income Statement (Site not responding. Last check: )
		Income is the major way of evaluating the economic performance of people, companies, other entities, and economies as a whole.
		An income statement is a document which reports all revenues and expenses relating to a specific period of time, whether it be a month, a quarter, or longer.
		By tracking net income from period to period, comparing changes in net income to economy wide and industry averages, and examining changes in the revenue and expense components of net income, investors and other decision makers can evaluate the success of the period's operations.
	www.businessfuture.co.uk /html/BusinessStartup/IncomeStatement.html (330 words)

	Explanation of the Income Statement - InvestorGuide University
		The income statement (sometimes called the profit-and-loss statement or PandL) is the first financial statement that you'll find in the annual report.
		You should be careful when looking at the income statement since companies can sometimes engage in gymnastics with their accounting methods.
		The statements are audited by outside firms, however, so there should be footnotes or other markers whenever anything deviates from standard accounting practices.
	www.investorguide.com /igu-article-427-investing-basics-explanation-of-the-income-statement.html (842 words)

	Income Statement - Accounting Base
		By law, all publicly traded companies in the US (and a number of other countries) are required to publish financial statements (including the income statement) on a quarterly basis (for the three-month period ending that quarter) and also on an annual basis, for the 12-month period ending at the end of the fiscal year.
		In preparing the income statement, it is important to know and understand the major principles of accounting as such knowledge is needed to ensure accuracy and consistency in preparation.
		A second principle that is important to the preparation of the income statement is the Matching principle which states that all costs and expenses associated with the revenue of a particular period are recognized in the period the revenue is recognized.
	www.accountingbase.com /IncStatemt.html (1228 words)

	Creating a Profit and Loss Statement
		On an income statement, the total inflow of net assets resulting from the delivery of services and products to your customers is measured in revenue accounts, which in turn tells you what caused the net assets to increase or decrease.
		When an income statement is prepared properly, the net increase or decrease in your net assets, or the difference between revenue and expense, is designated as net income or net loss.
		The numbers you report in the financial statements reflect these judgments and are based on estimates of factors such as the number of years of useful life for depreciable assets, the amount of uncollectable accounts expected, or the amount of warranty liability to be recorded on the books.
	www.va-interactive.com /inbusiness/editorial/finance/intemp/income.html (2101 words)

	Income Statement
		The income statement or profit and loss statement shows the amount and source of earnings for the company over a certain period of time, usually a calendar quarter or year.
		There are many other elements of the income statement that should be examined for a more complete analysis; especially when viewed relative to Buxton's previous and projected operations and, comparisons with other companies in the same industry.
		Eps is calculated by dividing net income available to the common stock by the average number of common shares outstanding.
	www.detroitstockexchange.com /income.htm (783 words)

	Income Statement Analysis
		By analyzing an income statement properly, investors can begin to evaluate the effectiveness of the management of operations in the companies in which they are interested in investing.
		Since the fundamental purpose of the income statement is to report profits or losses, understanding the various profitability ratios that follow is extremely helpful to your analysis of a firm.
		When analyzing income statements, it is very important to understand how different accounting methods for calculating depreciation affect the income statement.
	www.ameritradefinancial.com /educationv2/fhtml/learning/incmstanalysis.fhtml (2018 words)

	Understanding Profitability - File C3-24 August 2006
		However, net income can be distorted with the cash method of accounting by selling more than two years crops in one year, selling feeder livestock purchased in a previous year, and purchasing production inputs in the year before they are needed.
		An income statement is only one of several financial statements that can be used to measure the financial strength of a business.
		A Complete set of Financial Statements (Decision Tool), including the beginning and ending net worth statements, the income statement, the cash flow statement, the statement of owner equity and the financial performance measures is available to do a comprehensive financial analysis of your business.
	www.extension.iastate.edu /agdm/wholefarm/html/c3-24.html (1644 words)

	Is a second income statement needed? - to report comprehensive income Journal of Accountancy - Find Articles (Site not responding. Last check: )
		Comprehensive income is defined by the FASB as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.
		Reporting comprehensive income may help resolve some difficult and challenging financial reporting issues, particularly in the area of financial instruments, because the way certain issues involving recognition and measurement are resolved often hinges on whether and when items are to be reported in net income.
		The AIMR believes comprehensive income is needed for better and more useful financial reporting in several areas, including reporting the impact of changing fair values of marketable securities and all other nonowner changes in equity that currently are reported as equity adjustments.
	www.findarticles.com /p/articles/mi_m6280/is_n4_181/ai_18185051 (809 words)

	Online Accounting Course \| Income Statement
		The income statement is important because it shows the profitability of a company during the time interval specified in its heading.
		Under the accrual basis of accounting, service revenues and sales revenues are shown at the top of the income statement in the period they are earned or delivered, not in the period when the cash is collected.
		A gain is reported on the income statement as the net of two amounts: the proceeds received from the sale of a long-term asset minus the amount listed for that item on the company's books (book value).
	www.accountingcoach.com /online-accounting-course/04Xpg01.html (1619 words)

	Comprehensive Income: Reporting Preferences of Public Companies
		Reporting comprehensive income in the statement of changes in stockholders’ equity is still the predominant presentation.
		Among the companies that chose to report OCI in the statement of changes in stockholders’ equity, the presentation of total comprehensive income in the financial statements was not uniform.
		While four companies presented total comprehensive income in the notes to financial statements, as mentioned earlier, approximately 40% of the companies presented total comprehensive income in a separate column, while the remaining companies reported total comprehensive income within the total stockholders’ equity column in the statement of changes in stockholders’ equity.
	www.nysscpa.org /cpajournal/2004/1104/essentials/p40.htm (1729 words)

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