What is an Income Statement?
Answer:
An Income Statement is a financial statement
that shows a business’ financial picture for a particular period of time.  Think of it as a snapshot in time that shows income, expenses, debt, and taxes for the business during the specified time frame.

Income statements are also called Profit and Loss Statements, and are usually issued quarterly, semi-annually, or annually.  The value of an Income Statement is in the information it contains.  Did the business bring in more revenue than it paid out in expenses?  If so, why, and is it reasonable to expect that kind of positive cash flow every quarter?  Income Statements give the business manager information regarding the health of the company’s finances and can help direct future financial decisions.
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