An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period. It indicates how the revenues (also known as the "top line") are transformed into the net income or net profit Income Statement Format. There are two types of income statements: single-step and multi-step income statements. Let's take a look at an income statement, or statement of operations, from Amazon. Source: SEC. Here are some things to note when reading an income statement Multi-step income statement: The income statement represented in multi-steps with several subtotals, to report the income from principal operations, and separate the other expenses and revenues which affect net income, is referred to as multi-step income statement. The single-step income statement first groups and lists all revenues and gains (i.e. sales and interest revenue). Next, expenses and losses (i.e. cost of goods sold, selling, general and administrative) are grouped, subtotaled, and subtracted from revenues and gains to get net income. Single-step income statements are the much simpler option of the two. These statements merely subtract total expenses from total revenue to produce net Comprehensive income provides a much more detailed look at income since it accounts for all incomes related to the business, including Income Statement Income Statement does not include the following Transactions: 1 Transactions with the Shareholders (Owners) 2. Prior Period Adjustment items 3. Transactions initially reported in Other Comprehensive Income. Income Statement Formats 1. Single Step Income Statement The What is Income Statement? or Statement of Comprehensive Income ? Single step income statement isn't in that much of a use now-a-days. Since it doesn't categorize into different expenses and revenues, it doesn't help very much to derive a decision. Income statements can vary slightly depending on whether the statement is a single-step income statement or multi-step income statement. The statement of operations is more commonly referred to as an income statement, profit and loss statement or P&L statement. Single-step income statement - the single step statement only shows one category of income and one category of expenses. This format is less useful of external users because they can't calculate many efficiency and profitability ratios with this limited data. 7 Single-Step Income Statement The single-step statement consists of just two groupings: Revenues Expenses Net Income Single- Step No distinction between 38 Comprehensive Income Combined Income Statement LO 8 Explain how to report other comprehensive income. The Income Statement, or P&L Statement, measures a company's results of operations. In this tutorial, we will learn and present an example of the Here's a sample Statement of Comprehensive Income, which includes other comprehensive income . This topic is taken up in higher accounting A Statement Of Comprehensive Income Essay. 984 Words Dec 19th, 2014 4 Pages. MODULE 10 CASE SOLUTION CRITIQUE Venus Cellular COMPREHENSIVE INCOME Question 1: Identify whether the analysis of Single-Step Income Statement Follow Below Link to Download Tutorial https The Income Statement, or P&L Statement, measures a company's results of operations. In this tutorial, we will learn and present an example of