Income Statement Analysis
Gain an understanding of the basics of how an income statement is structured.
The income statement shows the amount of sales/revenues generated and cost/expenses incurred. The bottom line of an income statement indicates whether the entity earned a profit or incurred a loss. Unlike a balance sheet, which captures the value of assets, liabilities and net worth at a specific point in time, the income statement captures activity over a period of time. This white paper reviews how an income statement is structured and gives a description of each piece of what makes up the income statement.
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