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Purpose of income statement and balance sheet. The purpose of a balance sheet and income statement. Banks investors employees and anyone else interested in a company can review these reports and see how much money is coming into and going. The purpose of the income statement is to show the reader how much profit or loss an organization generated during a reporting period this information is more valuable when income statements from several consecutive periods are grouped together so that trends in the different revenue and expense line items can be viewed. Company leaders use at least four major financial statements to keep a proverbial finger on their company s pulse during a specific time interval.
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