How To Prepare A Partial Income Statement

It is one of the three financial statements that business firms usually prepare.

How to prepare a partial income statement. Normally we prepare an income statement for a single month or for a year. Prepare a partial income statement up to the gross profit line. For example a company may have acquired another business in the middle of a month and so only needs the financial results of the acquiree for the remaining days of the accounting period for consolidation purposes. A partial income statement is generally prepared by the company when there are certain or uncertain changes that affect the company s financial performance and is reported for only a part of the accounting period.

A partial income statement reports information for only part of a normal accounting period this tends to be a special purpose document that is only used once. However a partial income. This site might help you. The income statement is another name for the small business owner s profit and loss statement.