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What is Income Statement?

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What does Income State mean?

An income statement is a tablature that summarizes the income and expenses in a particular accounting period and shows the net results of the period’s activities as profit and loss. The main titles of this chart are gross sales profit, operating profit and net profit or loss. There is a different between the balance sheet and this tableau because a balance sheet stated the book value of a company. It includes the liabilities, assets and shareholder. On the other side, this table shows how they were used in the specified time period.

Income Statement
Income Statement

What types of the Income Tables are?

An income statement is divided into two groups as account type and report type. An Account Type Income Table is T-shaped table. You should write the expenses on the right and incomes on the left part of the table. A report type income table includes the titles in order such this: Gross sales, sales discounts, net sales, sales cost, operating expenses, other activity, ordinary income and profits, other activity, expenses and losses, net profit for the period. There are many other details under the titles..

Income Statement
Income Statement

The Income Table Format

Income Tables are organized within the framework of certain principles. In the arrangement of this table; the income from ordinary activities, the other income from the main activities (which are continuously) and unusual income that is not continuously are shown separately. The purpose is to state the sales, income, sales cost, expenses, profit and loss accounts as clearly. Also the results of the certain periods of business activity should be shown as classified and in compatible with the truth. Revenues and the losses are the key factors of this table. Revenues are evaluated as positive values while on the other side, the losses are shown as negative values. The revenues are indicated in number and there is no any text. The losses are stated in parentheses. You may notice a difference between the income table and the balances sheet; income table includes a period of time but the balance sheet based on a moment in the period. In Income Table; you will often see an express such as: For the period of…. (date)

Income Statement
Income Statement

The Best Templates

It is not very easy to create income tables because they contain too many details. Now, there are more practical methods to prepare useful, effective and appropriate tables. You can write some key words such as “free income statement templates” etc. on the search engines. Generally you can download and edit the templates free of charge. The steps are really easy; first review the templates’ formats and samples. Then choose the one that you desire and download it. They are printable and editable. You can make the required edits as you want. Some websites:

  1. vertex42.com
  2. quickbooks.intuit.com
  3. smartsheet.com
  4. template.net
  5. spreadsheet123.com

Let’s start to personalize your own income statement via these very practical templates.

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