Intermediate Accounting For Dummies

Chapter 5

Posting Income Statement Profit and Loss

In This Chapter

Discovering the difference in preparation

Evaluating and using the income statement

Looking at the differences between income statement sections

Classifying special income statement items

Working with unusual income statement accounts

Preparing an income statement

Staying user-friendly by condensing

The bottom line for most companies when it comes to accounting comes down to two factors: How much did we earn and how much did we spend? When you prepare an income statement, you’re putting in black and white what the company’s revenue and expenses were during an accounting period. The final accounting of these revenue and expense items lets you know whether a company made a profit or lost money.

In this chapter, I walk ...