This eBook you will give you a thorough understanding of how an income statement is prepared and the important information this can give you. This knowledge is something every manager should be familiar with.

It is a powerful decision-making tool that enables you to measure an organizations financial performance even if the organizations are different sizes. This information is then used to compare it against expectations to assess how well it is being managed.

This eBook you will give you a thorough understanding of the income statement, a powerful decision-making tool that every manager should be familiar with.

You will learn:

• How an income statement is prepared and what it can tell you
• The importance of transaction timing and how it influences the income statement totals
• How to use accounting standards to help you define operating and non-operating expenses
• How to use income statements to measure financial performance against expectations
• How to compare income statements for different sized organizations

1. Purpose of the Income Statement
2. Income Statement Formats
   1. The Single-Step Format
   2. Multiple-Step Income Statement
   3. Importance of Transaction Timing
   4. Other Operating Expenses
   5. Other Generic Terms
3. Using Income Statements Effectively
   1. Income Statements in Comparative Formats
   2. Performing a Common-Size Analysis
4. Comparison with Cash Flow Statements
5. Summary
6. References