Financial Statements: Financial statements are the accounting reports of any organization that are prepared with a purpose to disclose its past performance and also the assets and liabilities of the company along with the finances. These statements are prepared either on an annual basis or on a quarterly basis. Income Statement The income statement is one of the financial statements which show the financial health of a company. It is also known as the profit and loss statement or the P/L Statement. It represents the financial performance of a company for a particular time period. The income statement exhibits all the revenues and expenses and helps in calculating the net income of the company. To Identify: The purpose of the income statement.

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Chapter 2, Problem 4CT

Summary Introduction

Financial Statements:

Financial statements are the accounting reports of any organization that are prepared with a purpose to disclose its past performance and also the assets and liabilities of the company along with the finances. These statements are prepared either on an annual basis or on a quarterly basis.

Income Statement

The income statement is one of the financial statements which show the financial health of a company. It is also known as the profit and loss statement or the P/L Statement. It represents the financial performance of a company for a particular time period. The income statement exhibits all the revenues and expenses and helps in calculating the net income of the company.

To Identify:

The purpose of the income statement.

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