What is an income statement quizlet?

Operating activities are the day-to-day functions involved in running a business. The income statement summarizes the financial impact of operating activities undertaken by the company during the accounting period. It includes three main sections: revenues, expenses, and net income.Click to see full answer. Also, what is on an income statement?The income statement consists of revenues…

Operating activities are the day-to-day functions involved in running a business. The income statement summarizes the financial impact of operating activities undertaken by the company during the accounting period. It includes three main sections: revenues, expenses, and net income.Click to see full answer. Also, what is on an income statement?The income statement consists of revenues (money received from the sale of products and services, before expenses are taken out, also known as the “top line”) and expenses, along with the resulting net income or loss over a period of time due to earning activities.Similarly, which are 3 common misconceptions users of an income statement may have? Some of the most common misconceptions of the income statement are 1) People think net income equals the amount of cash generated by the business during the period. 3) A third common misconception is that the measurement of income involves only counting. Considering this, what is the point of an income statement? The purpose of the income statement is to show the reader how much profit or loss an organization generated during a reporting period. The other key subtotal is the operating profit, which is the gross profit minus all operating expenses (such as selling and administrative expenses).What is a balance sheet quizlet?Balance Sheet. A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. Assets. : A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

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