What is a Income Statement ?
Answer:
The income statement is the profit and loss statement of a business. It shows the performance of a business over a period of time such as a month or quarter or year. The income statement is preferable prepared in comparitive form to show changes from the preceeding year. Extraordinary gains and losses of material amount should be shown seperately. Also for public companies earnings per share should be presented on the income statement. The basic accounting formula is Sales Revenues minus Expenses = Income or Loss.
Interested in more Bookkeeping & Write-up Questions?
- Due To Due From
- there is an over accrual that is still sitting in the liability for three years now.. if i want to reverse should I use relevant expense account?
- What is kiting a check ?
- What is an accounts receivable aging schedule ?
- I live in Georgia , where do I file Employer's Quarterly Federal Tax Return 941 ?
