What is Income Statement

The income statement, an essential part of financial statement, is prepared for a period of time, usually a month or a year as chosen by the business. The income statement is known as the profit and loss account, statement of operations and statement of income. The function of this accounting document is to show the net profit or net loss resulting from the transactions of a business during a period. The income statement is made to provide the picture of the financial performance of the business over time.