Income Statement

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The Income Statement, also referred to as a profit and loss statement, statement of incomes and losses, or report of earnings, discloses the income the business has earned during the accounting period, the costs or expenses that were incurred by the business during the period and the difference between the costs and incomes for the period, or net profit (or loss). The Income Statement can be run for any interval, a week, a month, a quarter or even a fiscal year. The default interval is the first date of the calendar month to the current date.

The account type assigned to each Chart of Accounts number dictates the format of the Income Statement. The format of the statement is as follows:

Account Type	Totals	Formula for Total
Income
Cost of Goods Sold
	Gross Profit	Income - Cost of Good Sold
Expense
	Net Income(Loss) From Operations	Gross Profit - Expense
Other Income
Other Expense
Interest Paid
	Net Income(Loss) Before Taxes	Net Income(Loss) From Operations + Other Income - Other Expense - Interest Paid
Income Taxes
	Net Income(Loss)	Net Income(Loss) Before Taxes - Income Taxes

Drilldown, or the ability to take a closer look at the transactions that generated a part of the report and the original documents that generated the transactions is available.

See also Report Selection screen and Sample Report.