What Is an Income Statement? Purpose, Components & Format Video & Lesson Transcript
ContentSwitch to smart accounting. Try Zoho Books today!How to Determine Whether the Company Can Pay Its ObligationsWhich Statement Should You Use?Purpose of the income statementAvoid these bookkeeping mistakes as a small business ownerWhat goes on an income statement? The balance sheet and income statement complement each other in providing a complete picture of a company’s financial position and future prospects. Both are crucial for decision-makers, investors and financial institutions. Balance sheets and income statements are invaluable tools for business owners to measure their company’s performance and prospects, but they differ in key ways. The main purpose of an income statement is to allow a company to compare its...