<P> An income statement or profit and loss account ( also referred to as a profit and loss statement ( P&L ) , statement of profit or loss , revenue statement , statement of financial performance , earnings statement , operating statement , or statement of operations ) 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 ( money received from the sale of products and services before expenses are taken out , also known as the `` top line '' ) are transformed into the net income ( the result after all revenues and expenses have been accounted for , also known as `` net profit '' or the `` bottom line '' ) . The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported . </P>
<P> An income statement or profit and loss account ( also referred to as a profit and loss statement ( P&L ) , statement of profit or loss , revenue statement , statement of financial performance , earnings statement , operating statement , or statement of operations ) 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 ( money received from the sale of products and services before expenses are taken out , also known as the `` top line '' ) are transformed into the net income ( the result after all revenues and expenses have been accounted for , also known as `` net profit '' or the `` bottom line '' ) . The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported . </P>
what are the two basic categories of items on an income statement
what are the two basic categories of items on an income statement
revenues expenses
revenues expenses