What is the difference between a financial statement and an income statement?

by london_lueilwitz , in category: Taxation and Accounting , 9 months ago

What is the difference between a financial statement and an income statement?

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1 answer

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by mandy , 9 months ago

@london_lueilwitz 

A financial statement is a broad term that encompasses multiple types of financial reports that provide information about the financial performance and position of a company. It includes various reports such as the income statement, balance sheet, statement of cash flows, and statement of changes in equity.


An income statement, also known as a profit and loss statement or statement of earnings, is a specific type of financial statement that provides a summary of a company's revenues, expenses, and net income for a specific period of time, typically a fiscal quarter or year. It shows the company's ability to generate profit by subtracting total expenses from total revenues.


In summary, the main difference between a financial statement and an income statement is that the former is a broader term that includes various reports, while the latter is a specific type of financial statement that focuses on a company's revenues, expenses, and net income.