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Accounting & Tax vocabulary · Financial Statements

Income statement

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, income statement means: A financial statement that shows a company's revenue, expenses and resulting profit or loss over a period, such as a quarter or a year.

In Turkish: gelir tablosu, kar veya zarar tablosu

How it is used

Called the profit and loss account in the UK and the statement of profit or loss under IFRS. Managers usually say 'the P&L' and talk about costs that hit the P&L.

Example sentences

  1. The income statement shows a net loss for the first quarter because of one-off restructuring costs.

  2. Marketing is the largest expense line on our income statement.

Common collocations

  • income statement for the year
  • prepare an income statement
  • P&L account
  • hit the P&L
  • balance sheetA financial statement that shows what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.
  • revenueThe income a business earns from its normal activities, mainly from selling goods or services, before any costs or expenses are deducted.
  • expenseA cost a business has used up in a period to earn revenue, such as salaries, rent, electricity or advertising, which reduces profit.
  • net incomeThe profit left after all expenses, interest and taxes have been deducted from revenue for a period. If the result is negative, it is a net loss.
  • gross profitRevenue minus the cost of goods sold, before operating expenses such as rent, salaries and marketing are deducted.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.