This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
A summary of the income and expenses for the company over the operating period – a financial History Book for the fiscal period. The Income Statement in the Annual Report shows the total income and expenses (and the profit or loss) for the business over the entire business year.
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Income Statement Equation: Sales Revenue – Expenses = Profit For a DIY Income Statement Calculator, go here. |
→ The left side of the Visual Finance image is an Income Statement.
Also known as the ‘P&L’ or a Profit and Loss Statement.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.