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Accounting Basics
Basic Accounting Principles
Converting Cash to Accrual
Creating a Balance Sheet
How to Define a Trial Balance
What Courses Do I Take to Become an Accountant?
How to Define an Income Statement
How to Define Positive Cash Flow
How to Become a Accountant
How to Become a Certified Public Accountant
CPA Educational Requirements
How to Pass the CPA Exam
How to Explain Debits & Credits
How to Do Accounting Transactions
What Can I Do With a CPA License?
What Are the Benefits of Being an Accountant?
How to Reconcile a Bank Balance
What Is Private Accounting?
Why Are Ethics Important in Accounting?
Why Study Accounting?
Importance of Accounting
Posting to the General Ledger
Excel Checking Reconciliation
Summary: The definition of an income statement in accounting is something that summarizes revenues earned and expenses incurred over a period of time. Discover the difference between a balance sheet and income statement with insight from a certified public account in this free video on accounting.
Shanis Windland has a Bachelors of Science degree in accounting from Central Washington University. She is a certified public accountant licensed in the state of Washington. Windland...read more
"In this clip we're going to talk about, how to define an income statement. An income statement summarizes the revenues earned and the expenses incurred over a period of time. A balance sheet talks about where you stand at the end of a period or as of a certain date. An income statement talks about what happens over a period of time, so throughout the month of January we earned X numbers of dollars. Here is an example of a very simple income statement. At the top we show the revenue, or the amounts earned, in this example it was a 100 dollars. Next we would show the expenses, in this example 50 dollars, and at the bottom we get net income, how much money that company earned over that period, in this example it was 50 dollars, so we have revenue of a 100 minus expenses of 50 for a net income of 50. And that's how you define an income statement."
eHow Article: How to Define an Income Statement
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