Income Statement FAQ's

• What is an income statement? An income statement is a standard financial statement that displays the revenue or sales and the expenses for a company during a specific period of time.  
• What goes on an income statement?  Your income statement should include all of the revenue and expenses that your business incurred during a given period of time.
• What is a year to date income statement?  A year to date income statement should include all of your revenue and expenses for the current year.  The start date should be January 1st of the current year and the ending date should be the current date.  
• What is the difference between an income statement and a profit and loss?  A profit and loss is the same as an income statement, it is simply another term to describe the same financial statement.  
• What is the difference between an income statement and a P&L?  A P&L is short for profit and loss statement which is simply another term to describe an income statement.  A P&L is an income statement.  
• How to prepare an income statement?  In order to prepare an income statement you will need to calculate your total sales, total cost of goods sold, and total operating expenses for a given period of time and display them properly in an income statement template.  
• What does an income statement look like? Below is an example of on an income statement format.

• Are loan payments included on an income statement? Only the interest expense portion of a loan payment should be included on an income statement. The principal portion of the loan payment is not to be included.

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