What is Income Statement?
A definition of Income Statement
“An income statement is a financial document that provides a summary of a company’s revenues and expenses over a specific period, typically a fiscal quarter or year.”

Business Glossary > What is Income Statement?
Examples of Income Statement in a Sentence:
The income statement revealed the company’s financial performance for the year.
Investors analyzed the income statement to assess the company’s profitability.
Our quarterly income statement showed an increase in revenue.
Why is Income Statement Important in Business?
The income statement is crucial for investors and management to assess a company’s financial performance. It helps determine profitability and guides decision-making in areas like budgeting, investment, and cost management.
Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).
Associated Terms
Here are some associated business terms and synonyms for “Income Statement”:
- Profit and Loss Statement
- Earnings Statement
- Statement of Operations
Amazon Income Statement
Amazon’s income statement for the fiscal year 2022 demonstrated significant growth in their e-commerce and cloud computing segments, highlighting their diverse revenue streams and strategic investments that drove profitability.
Final Notes on Income Statement
The income statement provides essential insights for stakeholders to understand a company’s financial health. Monitoring trends in this document can aid in strategic planning and operational adjustments.
This has been a definition of Income Statement meaning.
Explore more from our Business Term Glossary for Entrepreneurs