What does an income statement cover?

What does an income statement cover?

An income statement provides an overview of company financial activity during a given period of time, comparing incoming revenue with outgoing expenses. It can cover any period of time for which you want information, from a particular week to a span of multiple years.

What is a projected income statement and its components?

A projected income statement shows profits and losses for a specific future period – the next quarter or the next fiscal year, for instance. It uses the same format as a regular income statement, but guesstimating the future rather than crunching numbers from the past. It’s also known as a budgeted income statement.

What time period does an income statement cover?

An income statement usually covers a year; however this statement may be drawn up for shorter periods, such as one month, three months (quarters) or six months. The period of time that is covered by the income statement (and other financial statements) is called the accounting period.

What is a projected balance sheet?

Projected balance sheets, or pro forma balance sheets, are the statements that show estimated changes to a company’s financial status, including investments, other assets, liabilities and financing for equity.

What are the 3 sections of an income statement?

The three main elements of income statement include revenues, expenses, and net income.

What expenses typically come first in the expenses section of an income statement?

First, operating expenses are subtracted from gross profit. This yields income from operations. Then other revenues are added and other expenses are subtracted.

What are expenses on income statement?

Expenses: Expenses are the costs that the company has to pay in order to generate revenue. Some examples of common expenses are equipment depreciation, employee wages, and supplier payments. There are two main categories for business expenses: operating and non-operating expenses.