Financial Accounting For Dummies

Chapter 10

Searching for Profit or Loss on the Income Statement

In This Chapter

Discovering two ways to present an income statement

Classifying the three business types

Identifying the common income statement sections

Keeping an eye out for unusual income statement accounts

Preparing an income statement

Staying current with regulations

This chapter gives you a comprehensive overview of how to prepare an income statement: the financial document that reflects a company’s revenue and expenses. The ultimate purpose of an income statement is to show whether a company made or lost money during the accounting period.

In this chapter, you learn the difference between setting up the income statement in a single-step format and setting it up in a multiple-step format. You also discover how the type of business causes the presentation of the income statement to change slightly.

I introduce each ...