Searching for Profit or Loss on the Income Statement
In This Chapter
Discovering two ways to present an income statement
Classifying the three business types
Identifying the common income statement sections
Keeping an eye out for unusual income statement accounts
Preparing an income statement
Staying current with regulations
This chapter gives you a comprehensive overview of how to prepare an income statement: the financial document that reflects a company’s revenue and expenses. The ultimate purpose of an income statement is to show whether a company made or lost money during the accounting period.
In this chapter, you learn the difference between setting up the income statement in a single-step format and setting it up in a multiple-step format. You also discover how the type of business causes the presentation of the income statement to change slightly.
I introduce each ...