Traditional format income statements are prepared primarily for external reporting purposes. True False They are mainly prepared for external users only. This is because they have limited internal uses. 21. In a contribution format income statement, sales minus cost of goods sold equals the gross margin.
the income statement - focuses on analyzing, recording, and summarizing the effects of operating transactions on balance sheet and income statement accounts Terms in this set (60) understand the business describe common operating transactions and select appropriate income statement account titles Study the accounting methods
income vs balance sheet the revenues and expenses on an income statement report the financial impact of activities in just the current period whereas item on a balance sheet will continue to have a financial impact beyond the end of the current period. income vs balance sheet
equal to revenues minus expenses. -net income indicates the amount by which stockholders' equity increases as a result of a company's profitable operations time period assumption the assumption that allows the long life of a company to be reported in shorter time periods income statement