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A. change in the fair market value of the assets from the prior income statement. B. Market value per share of stock at the date of the statement. C. Revenues collected during the period covered by the statement. D. Net income or net loss for the period covered by the statement
D. It shows the net profit or loss over the period
D. To arrive at the net profits or loss for the period under review.
How much the company made or lost money during the period being reported.It also represents a period of time like the cash flow statement.
Choice (D)
The purpose of the income statement is to show the:
D. Net income or net loss for the period covered by the statement
D. Net income or net loss for the period covered by the statement
The purpose of income statement is to show financial performance of a company.
An income statement presents the revenues and expenses and resulting net income or net loss for a specific period of time.
The income statement lists revenues first, followed by expenses. Finally the statement shows net income (or net loss). Net income results when revenues exceed expenses. A net loss occurs when expenses exceed revenues. Note that the income statement does not include investment and withdrawal transactions between the owner and the business in measuring net income.
For individuals it makes them realize there goals and personal targets :)
For companies the income statement is to put more pressure on sales to increase it :)
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