Assignment:
Introduction
Profit or Loss Statement or Income Statement is one of the important financial statements. It is one of the major financial statements used by the accountants and entrepreneur. It is a statement of net profit earned by the company during the year. It is a summary of management's performance in terms of profitability over a fiscal year.
It is a financial statement that measures a company's financial performance over a period of time. Income statement provides detail information of revenue and expenses incurred over a period of time. It shows net profit or loss incurred over a period of accounting period.
Profit or loss statement is important for a business because it shows the profitability of the company over an accounting period. The operating revenue part of profit statement is important for investors and analyst as it discloses the revenue and expenses of the business that are result of operating activities. The period of income statement differs from company to company depending on the fiscal year followed by the company.