What Is Income Statement Or P&L Account

Income statement is prepared on the basis of accrual principle of accounting.

Revenues and expenses are recorded when their transaction accours rather than when payment is made.

Suppose it seem made a cell of 10 crore to its distributor but the distributor has not had any money still it sikhen so 10 crore as revenue and same goes with the expense this is the measured drawback of pnl that is why many invested prefer balance sheet and cash flow statement over pnl.

Line item in income statement

Total income expenses profit before tax profit before tax tax expense profit after tax earnings per share EPS