What is the nature of the income statement and what does the income statement mean

The income statement is an accounting statement that reflects the production and operation results of an enterprise in a certain accounting period (such as monthly, quarterly, semi-annual or annual). The operating results of an enterprise in a certain accounting period may be manifested as both profits and losses, therefore, the income statement is also known as the profit and loss statement. It provides a comprehensive picture of the various revenues realized, the various expenses, costs or expenses incurred by the enterprise in a specific period, as well as the profits realized or losses incurred by the enterprise.

The accounting equation on which the income statement is prepared is:

The income statement is prepared according to the basic relationship of "income-expense=profit", and its specific content depends on the accounting elements such as income, expenses, and profits and their contents, and the income statement items are the specific embodiment of the content of income, expenses and profit elements. From the perspective of reflecting the movement of enterprise operating funds, it is a kind of statement that reflects the dynamic performance of enterprise operating funds, mainly providing information about the operating results of enterprises, and is a dynamic accounting statement.

The role of the income statement:

1. It can be used to explain, evaluate and improve the business results and profitability of enterprises.

2. It can be used to explain, evaluate and improve the solvency of enterprises.

3. Enterprise managers can make business decisions based on this.

4. It can be used to evaluate and evaluate the performance of management personnel.

Find out what an income statement is in two minutes.

An income statement is a financial statement that reflects the operating results of an enterprise in a certain accounting period. At present, there are two types of profit ** types commonly used in the world: single-step and multi-step.

It reflects the realization of profit (loss) of the enterprise in a month and year (the operating results of the enterprise in a certain period).

Both monthly income statement and annual income statement.

Reflects the operating results of the unit in a certain period of time.

In short: Revenue - Expenses = Profit.

The income statement is a financial statement that reflects the operating results of an enterprise in a certain accounting period, and it is a statement that reflects the operating results of an enterprise in a certain accounting period. Because it reflects the situation of a certain period, it is also called a dynamic report. Sometimes, the income statement is also called the income statement and income statement, and Liang Hong is often used in construction projects, municipal projects, etc.

Introduction of the income statement.

The income statement is prepared according to the basic relationship of "income-expense=profit", and its specific content depends on the accounting elements such as income slag belt, expenses, and profits, and their contents, and the income statement items are the specific embodiment of the content of income, expenses and profit elements.

At present, there are two kinds of profit ** type commonly used in the world, single-step and multi-step, and the single silver reed step type is to add up the total income of the current period, and then add the total amount of all expenses to calculate the current income at one time.

The single-step approach is characterized by the fact that the information provided is raw data, which is easy to understand; Multi-step is a way to calculate the net profit of various profits in multiple steps, which is convenient for users to compare and analyze the operation and profitability of the enterprise.

The annual income statement is:

1. The income statement is an accounting statement that reflects the production and operation results of an enterprise in a certain period.

2. The income statement matches the operating income of a certain period with the operating expenses related to the same accounting period to calculate the net profit of the enterprise in a certain period.

3. The income statement, also known as the income statement and profit and loss statement, is a statement that reflects the operating results and distribution of the enterprise in a certain period (monthly, annual).

4. Therefore, it is a dynamic statement that reflects the financial results of the enterprise.

5. The income statement must be prepared on a monthly basis and submitted to the outside world.

6. At the end of the year, the enterprise should prepare an annual income statement.

7. The table can reflect the net profit, total profit and profit composition realized by the enterprise in a certain period.

8. The use of financial results information revealed in the income statement is convenient for users of the statement to understand the business performance and ability to obtain the enterprise, and the profit trend is helpful to find the problems in the business process by analyzing the reasons for the change in profit increase and decrease, and take improvement measures to continuously improve the profitability of the enterprise in accordance with the business intentions. <>

The income statement mainly reflects the operating results of an enterprise in a certain accounting period. It mainly reflects the following aspects:

The elements that make up the profit of the main business. Starting from the main business income, the main business profit is obtained after deducting the relevant expenses and taxes incurred to obtain the main business income.

The elements that make up the operating profit. The operating profit is calculated on the basis of the profit of the main business, plus the profit of other business closed and fierce training, minus operating expenses, management expenses and financial expenses.

The elements that make up the total profit (or loss). The total profit (or total loss) is calculated by adding (minus) investment income (loss), subsidy income, and non-operating income and expenditure on the basis of operating profit.

The elements that make up a net profit (or net loss). Net profit (or net loss) is calculated on the basis of total profit (or total loss), minus income tax expense included in profit or loss for the current period.

The form and function of the income statement

Form of income statement: single-step income statement calculates net profit by deducting expenses and losses directly from income and profits, does not distinguish between categories of income and expenses, and does not calculate small counts; The multi-step income statement distinguishes financial information into operating activities and non-operating activities, and calculates the profit sub-count separately, among which the calculation of intermediate profits such as gross profit from sales and operating profit is very useful for analyzing financial statements.

The function of the income statement: to provide a basis for external investors to know this and for lenders to make investment decisions and loan decisions; Provide a basis for the business decision-making of the internal management of the enterprise; It provides an important basis for the internal performance appraisal of the enterprise. The income statement reflects the situation of a certain period, so it is also called a dynamic statement.

Sometimes, the income statement is also called the income statement, income statement.