Posts tagged Income Statement

Knowing the linkage of numbers in a financial statements set is vital to anyone who attempts to understand the content of financial statements and accounting …

In general, an income statement summarizes revenues and expenses and gains and losses, and ends with the net income for a specific period. However, to …

A company’s financial statements are invaluable for investors. Using the financial statements alone you can determine the health of the company and make educated predictions …

The objective of financial statements is to provide information for economic decisions. A complete set of financial statements comprises a balance sheet, income statement, statement …

DIVIDEND PAYOUT RATIO – This ratio is computed by dividing total cash dividends for the year by the net income for the year. It’s simply …

Most business publish three financial statements, usually annually but sometimes more frequently. These are the profit and loss account (income statement), the balance sheet and …

This post tackles two basic questions about “Analyzing Profit Behavior”: How did the business make its profit? How can the business improve its profit performance?. …

At the end of every accounting period certain accounts are closed and others remain open. This post is softly trying to remind you with some …

There are several tools used to conduct financial analysis. One is a database of accounting information, in which an analyst can roam for days, tracking …

After a business decides on the format for reporting its income statement (multi-step or single-step), the next main decision concerns how much information to disclose …

Businesses keep two types of account; Real Accounts and Nominal Accounts. What is Real Account? What is Nominal Account? The following explanations may deliver easier understanding for …

The guts of an annual financial report are the three primary financial statements are briefly explained below: Income Statement: This is the summary of a …

We can use several tools to evaluate a company, but some of the most valuable are “financial ratios“. Ratios are an analyst’s microscope: they allow …

BALANCE SHEET Each framework requires prominent presentation of a balance sheet as a primary statement.   Format IFRS: Entities present current and non-current assets, and …