The main purpose of an income statement
Respond to this student post, only 175 words response is needed, do not need a cover sheet.
2. The main purpose of an income statement is to so a broke down version that is easy for people to read of the income of the company. The income statement can be used to show the income flow for the company in order to compare to other time periods which can help investors or management to see if there is an increase or decrease in revenue in a timely manner. The income statement show all revenue that has been added together to make one amount and all expenses which has also been added together to make one amount that the company has with an ending net income that shows if the company has a net income or a net loss. The income statement is used to ultimately show wither the company is succeeding or failing for a time period which is used to predict future performance of the company. The income statement is used to inform everyone that has any part in the company of the standing of the company for the time period this can be the investors, lenders, creditors, and even the owners of the company.
Answer preview to the main purpose of an income statement
APA
180 words