White Paper

6 Pages
  • 6 Pages

Income Statement Analysis

 

Gain an understanding of the basics of how an income statement is structured.

The income statement shows the amount of sales/revenues generated and cost/expenses incurred. The bottom line of an income statement indicates whether the entity earned a profit or incurred a loss. Unlike a balance sheet, which captures the value of assets, liabilities and net worth at a specific point in time, the income statement captures activity over a period of time. This white paper reviews how an income statement is structured and gives a description of each piece of what makes up the income statement.