Recruiter's Glossary

Examples: Income Statement • Amortization • Revenue Recognition

Income Statement

Term from Accounting industry explained for recruiters

An Income Statement is one of the main financial reports that shows how much money a company made or lost during a specific time period. It's also commonly called a Profit and Loss Statement (P&L) or Statement of Operations. Think of it as a business's report card that shows all money coming in (revenue), money going out (expenses), and what's left over (profit or loss). Accountants work with these statements to help businesses understand their financial health and make important decisions. When you see this term on a resume, it usually means the person has experience analyzing or preparing these important financial documents.

Examples in Resumes

Prepared monthly Income Statements and Profit and Loss Statements for a portfolio of 50+ clients

Analyzed Income Statements to identify cost-saving opportunities resulting in 15% reduction in expenses

Led quarterly P&L reviews with executive team members to guide strategic planning

Typical job title: "Accountants"

Also try searching for:

Staff Accountant Financial Analyst Accounting Manager Financial Manager Controller Bookkeeper Finance Director

Where to Find Accountants

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you explain variances in an income statement to non-financial stakeholders?

Expected Answer: A senior accountant should be able to translate complex financial information into simple terms, explain major changes in revenue or expenses, and provide meaningful business insights in language that non-financial people can understand.

Q: How do you ensure the accuracy of income statements when dealing with multiple departments or entities?

Expected Answer: Should discuss review procedures, reconciliation processes, internal controls, and cross-checking methods they use to maintain accuracy across complex organizational structures.

Mid Level Questions

Q: What are the key components of an income statement and how do they relate to each other?

Expected Answer: Should be able to explain revenue, cost of goods sold, gross profit, operating expenses, and net income in simple terms, and how changes in one area affect others.

Q: How do you identify potential errors or irregularities in an income statement?

Expected Answer: Should discuss common red flags like unusual fluctuations, unexpected ratios, or inconsistencies between periods, and basic verification procedures.

Junior Level Questions

Q: What is the difference between revenue and profit?

Expected Answer: Should explain that revenue is all money coming in from sales, while profit is what's left after subtracting all expenses from revenue.

Q: How often are income statements typically prepared?

Expected Answer: Should know that income statements are usually prepared monthly, quarterly, and annually, and understand the basic purpose of each reporting period.