Contents of income statement

Income statement, also known as income statement, is a report that reflects the operating results of an enterprise in a certain accounting period. By listing the data in the income statement, information users can intuitively feel the increasing and decreasing trend of income, cost and profit, so as to have a general understanding of the business situation of the enterprise.

The operating income and investment income realized by an enterprise in a certain accounting period, as well as the operating costs, sales expenses, taxes and surcharges, financial expenses, management expenses, research and development expenses, non-operating expenses, etc. incurred to realize the above income are all listed in the income statement.

By combining the income statement with the relevant data of the balance sheet, we can make some basic analysis of the financial statements, such as comparing the cost of goods sold with the average balance of inventory, and we can get the inventory turnover rate that reflects the operating efficiency.

Comparing the net profit with the total assets or owners' equity, we can get the net interest rate of assets that reflects the input-output efficiency.