Income Statement Is Dated For A Period Of Time

To further illustrate a company would present its annual balance sheet as of dec.

Income statement is dated for a period of time. Thus the amount by which the revenues for a particular period of time exceed the expenses incurred to generate them is called net income or net profit. Intro to finance june 2009 session 2 is free download as powerpoint presentation ppt pdf file pdf text file txt or view presentation slides online. The income statement presents the financial results of a business for a stated period of time. While a balance sheet relates to a specific date or a given point within an accounting cycle an income statement is concerned about a particular period or the time during an accounting cycle.

Conversely they must report an income statement and a cash flow statement that covers a time frame. C total assets and current assets. The statement quantifies the amount of revenue generated and expenses incurred by an organization during a reporting period as well as any resulting net profit or loss the income statement is an essential part of the financial statements that an organization releases. The balance sheet is always dated till a certain period and values of elements on that date are accurate as of that particular period.

What does an income statement show about a company over a period of time. This summary of the company s financial activities reflects the relationship between its assets and liabilities. On the other hand balance sheet provides a progress report on the financial position of a company at a specific point in time. The time period is clearly mentioned at a beginning of the statement.

The balance sheet summarizes financial information about your company at a point in time. For example suppose during the month of january a trader has a total revenue sales of 55 000 and has incurred total expenses of 46 000 his net income will be 9 000 55 000 46 000 for. 31 whereas its income statement would cover the twelve months ending dec. D revenue and costs of goods sold.

For example the statement as of june 30 2011 indicates that the statement shows the financial status on that date.