What is the definition of Income Statement in finance?

An Income Statement is one of the three financial statements that are used to value a company and to show inflows and outflows of value. The Income Statement lists all operational costs of the business as well as any income. It is always for a period of time (i.e. 1 year).

Some examples of items included on the income statement are:

• Revenue
• Cost of Goods Sold
• Research & Development
• Depreciation & Amortization
• Earnings Per Share