One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement, also known as the profit and loss statement or “P&L”
The method for calculating an individual's gross income differs slightly from a firm's method. Although the computations are identical, the categories used to classify income and expenses vary depending on the type of company.
The gross income serves as the starting point for the financial planning process. It establishes how much money is available to meet other financial objectives, such as savings, investments, and costs.