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Income Statement
Income Statement
Income statement is a bussiness financial statement that lists revenues, expenses, and net income throughout a given period. Because of the various methods used to record transactions, the dollar vallues shown on an income statement often can be misleading.
The income statement is one of the three major of financial statement. The other two are the balance sheet and the statement of cash flows. The income statement is devided into two parts : the operating and non operating sections. The portion of the income statement that deals with operating items is interesting to investors and analysts alike because this section discloses information about revenues and expenses that are a direct result of the regular bussiness operations.
For example, if a bussiness creates sports equipment, the operating item section will talk about the revenues and expenses involved in the production of sports equipment.
The non operating items section discloses revenue and expense information about activities that are not tied directly to a company's regular operations.
For example, if the sport equipment company sold a factory and some old plat equipment, this information would be in the nonoperating items section.
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