Income Statement Assignments Help
Income Statement Accountants and business owners alike use income statement which is considered to be a vital financial statement
among other financial statements that are equally vital. Income statement is also known as the profit and loss statement, statement of operations, or statement of income.
The reason income statement is vital is due to the fact that it’s a reflection of whether or not a company is profitable over a span of time and the extent of its profitability. The time period that companies choose may vary from company to company. The income statement does not include cash receipts or cash disbursements. However what it does include are:
- Gains and
When the net amount of expenses and losses are deducted from revenues and gains and a positive amount is the bottom-line then a company has a net income. On the other hand a net loss of a company is an indication that after a similar a deduction of net amount of expenses and losses from revenues and gains the bottom-line is a negative amount.
How profitable a company is, is of prime concern for several reasons. A bank or creditor would hesitate to offer further credit facility in addition to what the company may already have. Conversely if a company is profitable that translates to net income as a bottom-line on the income statement. If indeed a company has net income that means the company has been able to utilize its borrowed and invested funds successfully.
A profitable company is viewed favourably by current and potential lenders and investors alike, management, competitors, government agencies, labour unions, so on and so forth. The format of an income statement or the profit and loss statement would vary based on how complex the activities of a business are.
An income statement therefore is a document that is generated every month and/or year as a report of a company’s earnings. All relevant income and expenses incurred to generate income in relation to a span of time are stated on the income statement. The income statement in other words is a report that analyses the ability of a business to generate cash.
It could liken with a balanced scorecard of how a business performs from a financial perspective in terms of revenue expenses, depreciation and cost of goods which are the key performance indicators. Various factors combined the income statement analyses from different angle whether a company makes profit or loss at various span of time of the year.
Simply put deducting cost of goods and expenses from revenue the net result would either be a profit or a loss. The purpose of the income statement is not to report when accrued revenue was collected or when accrued expenses were paid. Rather the purpose of the income statement is to make profitability projections over a span of time as mentioned on the business plan. With regard to a business plan, the income statement is typically prepared on a monthly basis for the first year, quarterly for the second and annually for the third.
Students requiring income statement assignment help
would benefit from tutors at Assignments4U. There is no denying of the fact that students do need income statement assignments help
. Homework can be puzzling. Hence our tutors provide solution to assignments of students.