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What is financial statement that summarizes the revenues and expenses for a specific period of time?
income statement
What financial statement element is closed at the end of an accounting cycle?
revenues
Is a financial statement that summarizes the revenues and expenses for a specific period of time?
skuks as
What is financial elements?
The elements of financial statement refer to the items enclosed in a financial statement. Examples of these elements are assets, liabilities, net or equity assets, expenses, revenues, losses and gains.
What is the business definition for profit loss statement?
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
Which financial statement will determine if a business is profitable?
The income statement, also known as the profit and loss statement, determines if a business is profitable. It summarizes revenues, expenses, and profits or losses over a specific period, allowing stakeholders to assess the company's financial performance. By comparing total revenues to total expenses, the income statement provides a clear picture of profitability.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
WHAT IS THE PRIMARY FINANCIAL STATEMENT WITH WHICH WE COMMUNICATE FINANCIAL ACCOUNTING INFORMATION?
The primary financial statement used to communicate financial accounting information is the income statement, also known as the profit and loss statement. It provides a summary of a company's revenues, expenses, and profits or losses over a specific period, allowing stakeholders to assess the organization's financial performance. Other key financial statements include the balance sheet and cash flow statement, but the income statement is central to evaluating operational success.
Why kind of statement is also known as a profit or loss statement?
A profit or loss statement is also known as an income statement. This financial statement summarizes a company's revenues, costs, and expenses over a specific period, providing insight into its financial performance. It indicates whether the company has made a profit or incurred a loss during that period.
Does the statement of changes in financial position derives its information from the income statement?
No, the statement of changes in financial position does not derive its information from the income statement. The statement of changes in financial position shows the sources and uses of funds during a specific period, including cash flow from operating, investing, and financing activities. It provides a different perspective than the income statement, which focuses on revenues, expenses, and net income.
How income statement related to the statement of financial position?
The income statement and the statement of financial position (balance sheet) are interconnected financial statements that provide insights into a company's performance and financial health. The income statement summarizes revenues and expenses over a specific period, resulting in net income or loss, which is then reflected in the equity section of the statement of financial position. This net income contributes to retained earnings, impacting the overall equity and asset liabilities of the company. Together, they offer a comprehensive view of a company's profitability and its financial standing at a specific point in time.
What is on an income statement?
revenues and expenses
