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(228) 818-0558

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(316) 633-1005

Income statement terminology

Here are a few terms related to the income statement that you’ll want to know:

  • Income statement - The financial statement that presents a summary of the company’s financial activity over a certain period of time, such as a month, quarter, or year. The statement starts with Revenue earned, subtracts the Costs of Goods Sold and the Expenses, and ends with the bottom line — Net Profit or Loss.
  • Revenue - All money collected in the process of selling the company’s goods and services. Some companies also collect revenue through other means, such as selling assets the business no longer needs or earning interest by offering short-term loans to employees or other businesses.
  • Costs of goods sold - All money spent to purchase or make the products or services a company plans to sell to its customers.
  • Expenses - All money spent to operate the company that’s not directly related to the sale of individual goods or services.
  • Gross Income - With a few exceptions, the total of an individual's income, including wages, salaries, interest, dividends, alimony, rents, royalties, bonuses, tips and fringe benefits.

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