What is an income statement prepared for?

Income statement is prepared to find out the profit or loss for one specific single fiscal year. If income statement is not prepared then there is no way to find out the profit or loss information for specific period of time.

In merchandising company income statement there is no detailed cost of goods sold statement is prepared while in manufacturing company income statement detailed cost of goods sold statement is prepared.

The Income Statement is prepared from the balances of some of the General Ledger Accounts. The General Ledger Accounts are split between the Income Statement and the Balance Sheet. The Account types used by the Income Statement are Revenue, Costs and Expenses.

Income statement.

Income statement

Budgeted income statement is that income statement which is prepared before the actual income statement based on standard measurement and amounts in planning stage to foresee the future of business and which is used for controlling purpose as well.

Budgeted income statement is prepared at the last after preparing all other budgets and sales budget is the starting point of budgeting process.

before the income statement and the statement of owner's equity

after income statement, before the balance sheet

The Income Statement must be prepared first because the Current Profit or Loss (from the Income Statement) is needed in the Equity section of the Balance Sheet to make it balance. Also, the current profit or loss is the starting point to calculate Cash from Operations needed for the Cash Flow Statement.

Income Statement, Retained Earnings Statement, Statement of Equity, Balance Sheet, and then Statement of Cash Flows.

Income statement is prepared to find out the net profit or loss related to one fiscal year of business activities.

income statement includes expenses and incomes related to that specific single fiscal year for which that income statement is prepared. It is to clarify that only income and expenses related to that specific period is included and not for any other fiscal year.

Both statements are difference in this way that in merchandising income statement there is only one purchases items while in manufacturing income statement there is complete manufacturing account is also prepared to show manufacturing process as well.

When there is a parent child relation available then consolidated income statement is prepared in which expenses and income of parent and subsidiary are shown in one single financial statement due to which net profit or loss for whole organization is shown.

It is not necessary to create income statement for one year but even then one year is considered reasonable time period for any type of company to find out profit and loss and for which financial statements can be prepared.

Income statement of manufacturing organization is same as for trading company with little difference in manufacturing company there is separate manufacturing account is also prepared.

the income statement is first, followed by the the statement of owner or stockholder's equity balance sheet, and last the cash flow statement.

Yes in indirect method of cash flow statement , cash flow from operating activities is prepared by taking the current year income as starting point

NO; The Balance Sheet is prepare after the statement of owners Equity and income statement. The balance sheet used this other two statements. The Income statment needs to be preapred before Owners Equity because the earnings will affect old the others poperation. These statements are both wrong. From what it says in my Financial Accounting book right in front of me, the income statement is prepared first, not the statement of owners equity. In the…

balance sheet,income statement,cash flow statement,retained earnings

The original investment, the revenue, expenses that resulted in net income, and withdrawal by the owner.

Cash flow statements just as the Income Statement and Balance Sheet are prepared using historical information which is in the past. It therefore does not provide complete information to assess the future cash flows of an entity. Cash flow statements just as the Income Statement and Balance Sheet are prepared using historical information which is in the past. It therefore does not provide complete information to assess the future cash flows of an entity.

Constructing a statement of cash flow from income statements and balance sheet is no simple task and requires training. Most CPAs can do this, but not all. Unless you are a professional finance person or accountant, I suggest you hire an accountant to do this. Additionally, please be aware that financial statements prepared in accordnace with GAAP, usually include a cash flows statement with the income statement and balance sheet.

A budget income statement can be prepared from the data developed in: Sales budget Ending finished goods inventory budget Selling and administrative budget Cash budget The budgeted income statement is one of the key schedules in the budget process. It shows the company's planned profit for the upcoming budget period, and it stands as a benchmark against which subsequent company performance can be measured.

in cash flow statement using indirect method actual net profit from income statement is adjusted for non cash items to arrive at actual cash from operating activities.

Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.

Following are two catagories of income statement: 1- Single Step Income statement 2- Multy-step income statement

projected income statement is the estimated income statement to estimate the future business position.

no. income statement is a only a statement in financial statements.

income statement

Gain on sales of asset is shown in income statement as other income section of income statement

1. Single step income statement 2 – Multi-step income statement

You can't income tax is based on TAXABLE income, not financial statement income.

it is an income statement with a spin

Statement of Comprehensive Income

income statement

income statement

Consolidated income statement is that statement in which expenses and incomes of subsidiary as well as parents companies shown as a joint in one single income statement.

Income statement and balance sheet are both related to each other as transactions effect income statement and balance sheet as well and net income or loss from income statement is also part of balance sheet.

Projected income statement means the preparation of propose or expected income statement of future or predicting the future income statement based on certain assumptions. Purpose of projected income statement is to find out or predicting the future of business by analyzing different scenarios in planning phase of business.

Income is an income statement account and shown in income statement and not a balance sheet account.

Yes office supplies are expenses and it is part of income statement as all expenses are shown in income statement.

yes purchases is part of income statement and shown in trading account or direct expenses part of income statement.

The Income Statement section of the work sheet is the information source used in preparing the income statement.

it is from the income statement and balance sheet

Balance sheet, income statement, statement of cash flows, statement of ahareholder's equity and statement of comprehensive income, which is often incorporated into the income statement but is a separate reporting requirement for SEC filings

The final account is prepared at the end of each year. It is the combination of the income statement and the balance sheet. The final accounting shows a business where is stands financially and can be compared to past years to see if business and profits are up or down.

for a manufacturing concern it will be a manufacturing account and for a non manufacturing concern it will be a trading account or a profit and loss account or income and expenditure account.

Yes all revenues are part of income statement and interest revenue also that’s why it is shown in income statement as other income.