What is included in income statement?

The income statement consists of revenues (money received from the sale of products and services, before expenses are taken out, also known as the “top line”) and expenses, along with the resulting net income or loss over a period of time due to earning activities.

Read, more elaboration about it is given here. Likewise, people ask, what items appear on the income statement?

The most common income statement items include:

  • Revenue/Sales. Sales Revenue.
  • Cost of Goods Sold (COGS)
  • Gross Profit.
  • Marketing, Advertising, and Promotion Expenses.
  • General and Administrative (G&A) Expenses.
  • EBITDA.
  • Depreciation & Amortization Expense.
  • Operating Income (or EBIT)

Also, is cash included in income statement? The income statement is important because it shows the profitability of a company during the time interval specified in its heading. Keep in mind that the income statement shows revenues, expenses, gains, and losses; it does not show cash receipts (money you receive) nor cash disbursements (money you pay out).

Also know, what are the 4 parts of an income statement?

The financial statements are comprised of four basic reports, which are as follows:

  • Income statement. Presents the revenues, expenses, and profits/losses generated during the reporting period.
  • Balance sheet.
  • Statement of cash flows.
  • Statement of retained earnings.

What does the income statement reflect?

Also known as the profit and loss statement or the statement of revenue and expense, the income statement primarily focuses on the company's revenues and expenses during a particular period.