Income statement

An income statement reports the revenue and expenses assigned to a reporting period and the resulting profit or loss. It differs from a balance sheet at one date and from a record of bank receipts and payments.[1][2] Gross profit, operating profit and net profit represent different stages as expenses are deducted.

A webshop can use it to investigate whether advertising, warehouse or staffing costs absorb revenue growth. Compare consistent classifications and periods. Purchasing inventory does not automatically create an equal period expense: unsold goods and durable investments can be accounted for differently from ordinary operating expenses.