Week 2: Journal



Week 2: Journal

Introduction

Income statement is one of the parts of the financial statement. The purpose of income statement is to show revenue and expenses incurred over the period i.e. it is usually for twelve months. In order to evaluate the success of the business, income statement indicates whether revenue incurred in the year were greater or lesser than the expenses.

Discussion

Preparations of Income Statement are usually based on accrual, cash basis or income tax basis. It is necessary to understand the preparation basis since, the end results differ.

Since, Monthly income earned by me in a month is $ ...