Friday, August 13, 2010

Accounting Income Statement

The main purpose of the accounting income statement is to report the net income earned by a company during a specified period. Most company's issue annual and quarterly income statements.

The income statement is generally considered the best representation of a company's financial health. A well prepared should answer the following questions:

  1. What is the company's current financial status (profit/loss) ?
  2. What were the company's operating results for the period?
  3. What did the company use its cash for during the period.

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