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
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