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Accounting All-in-One For Dummies, with Online Practice, 2nd Edition
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Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

by Joseph Kraynak
April 2018
Beginner content levelBeginner
768 pages
20h 9m
English
For Dummies
Content preview from Accounting All-in-One For Dummies, with Online Practice, 2nd Edition

Chapter 2

Preparing an Income Statement and Considering Profit

IN THIS CHAPTER

check Getting a grip on what profit is and isn’t

check Designing the income statement and deciding what to disclose

check Recognizing how profit affects a business and its financial condition

check Handling unusual gains and losses in the income statement

check Correcting misconceptions about profit

An income statement shows in black and white how much money a business earned and spent over any given period along with a bottom-line figure — net profit or loss. As an accountant, you create income statements for your company and other users, including investors. Business owners and managers use income statements to determine the overall financial condition of their business and to make informed decisions. Investors and lenders may also refer to a company’s income statements when deciding whether to buy or sell shares in the company or loan the company money.

This chapter begins with the components that make up the income statement. ...

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Publisher Resources

ISBN: 9781119453895Purchase book