Income Statement

This is company's accounting statement that shows its Income, Expenses, and Profit (or Loss) over a period of time. It is a picture of the financial performance of a company. It is sometimes referred to as a Profit & Loss (P&L) Statement. It allows a compay (or others) to compare its performance to that of other similar businesses. It tells shareholders how well their company is doing with respect to generating profits and earnings per share.

Similar financial terms

Earned income
The compensation from participation in a business, including normal remuneration (wages, salary and commissions) and bonuses.

Underwriting income
For an insurance company, the difference between the premiums earned and the costs of settling claims.

Taxable income
Gross income less a set of deductions such as allowances, deeds of covenants, and losses.

Spread income
Also called margin income, the difference between income and cost. For a depository institution, the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources).

Net income
The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.

Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven. The subsidiary relends the money to the parent.

Premium income
The income made by an insurance company resulting from premiums paid for insurance products.

Effective gross income
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.

Household income
The total level of income earned by all the households in the economy. This will be a significant part of the overall level of National Income.

National income
The value of goods and services created by a country in one year.

Cash flow statement
Alternative name for the statement of cash flow.

Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently used by U.S. firms. It mandates the use of the current rate method.

Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in use by U.S. accounting firms.

Statement-of-cash-flows method
A method of cash budgeting that is organized along the lines of the cash flow statement.

Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a specified period.

Statement billing
Billing method in which the sales for a period such as a month (for which a customer also receives invoices) are collected into a single statement and the customer must pay all of the invoices represented on the statement.

Registration statement
A legal document that is filed with the SEC to register securities for public offering.

Pro forma financial statements
Financial statements as adjusted to reflect a projected or planned transaction.

Pro forma statement
A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows.

Official statement
A statement published by an issuer of a new municipal security describing itself and the issue

Notes to the financial statements
A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements.

Common size statement
A statement in which all items are expressed as a percentage of a base figure, useful for purposes of analyzing trends and the changing relationship between financial statement items. For example, all items in each year's income statement could be presented as a percentage of net sales.

Convention statement
An annual statement filed by a life insurance company in each state where it does business in compliance with that state's regulations. The statement and supporting documents show, among other things, the assets, liabilities, and surplus of the reporting company.

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Margin call

A demand for additional funds because of adverse price movement. Maintenance margin requirement, security deposit maintenance

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