What do Investors want to know?
Net earnings figures in the operating activities information is hard to dispute; either the business was profitable, or it was not. The Income Statement is intended to help investors accomplish the following objectives:
The period of time that the statement covers is chosen by the business and will vary. For example, the heading may state:
"For the Three Months Ended December 31,2015" (The period of October 1 through December 31, 2015.)
"The Four Weeks Ended December 27, 2015." (The period of November 29 through December 27, 2015.)
"The Fiscal Year Ended June 30, 2015" (The period of July 1, 2014 through June 30, 2015.)
Keep in mind that the income statement shows revenues, expenses, gains, and losses; it does not show cash receipts (money you receive) nor cash disbursements (money you pay out).
Source: Accounting Coach; Money Instructor
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.