Chapter 3. The Income Statement
One of the two main financial statements of a business…the other is the Balance Sheet.
The Income Statement
• The Income Statement gives one important perspective on the health of a business—its profitability.
• Note: The Income Statement does not tell the whole picture about a company’s financial health.
The Balance Sheet reports on assets, liabilities and equity. The Cash Flow Statement reports on cash movements.
• Also note: The Income Statement says nothing about when the company receives cash or how much cash it has on hand.
• The Income Statement reports on making and selling activities of a business over ...
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