What are Income Statements?

Name: What are Income Statements?
Rating: 4.7222 (18 reviews)
Author: Paul Newton

by Paul Newton

(18 ratings )

Language : English

This eBook you will give you a thorough understanding of the income statement and why it is such a powerful decision-making tool.

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Description

Preface

Content

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

Purpose of the Income Statement
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
Using Income Statements Effectively
1. Income Statements in Comparative Formats
2. Performing a Common-Size Analysis
Comparison with Cash Flow Statements
Summary
References

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About the Author

Paul Newton