The income statement is a financial statement that summarizes the results of a company's operation by matching revenue and related expenses for a particular accounting period.It shows the net income or net loss.It is alternatively called Earnings Statement，Statement of Operations，and Profit and Loss Statement.

There are two common forms of income statements:the Multiple-step Income Statement contains the series of steps in which costs and expenses are deduced from revenue.As a first step，the cost of goods sold is deduced from sales to produce an amount for gross profit.As a second step，operating expenses are subtracted from the gross profit to obtain operating income(or operating profit).As a final step，income tax expenses are subtracted to determine net income.The multiple-step income statement is shown in Table 10-4.The Single-step Statement is another format of income statement which groups all revenues together and then lists and reduces all expenses together without drawing any intermediate subtotals.The Single-step Statement is show in Table 10-5.

Table 10-4

Table 10-5