The income statement is a change statement. Explain what is meant by this.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 4.1Q

The income statement is a change statement. Explain what is meant by this.

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Can you solve this general accounting question with accurate accounting calculations?

I am looking for the correct answer to this general accounting problem using valid accounting standards.

I need the correct answer to this financial accounting problem using the standard accounting approach.

Answer 2

Textbook Question

Chapter 4, Problem 4.1Q

The income statement is a change statement. Explain what is meant by this.

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 4, Problem 4.1Q

The income statement is a change statement. Explain what is meant by this.

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 4, Problem 4.1Q

The income statement is a change statement. Explain what is meant by this.

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Answer 8

Expert Solution & Answer

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Financial statements:

Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To explain: The reason for which the income statement is termed as change statement.

Answer 12

Explanation of Solution

Income statement:

The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. It is also known as statement of operations’ (or) Earnings.

Income statement measures the revenues, expenses, gains and losses of the company during reporting period which causes owners’ equity to change for that reporting period. Thus income statement is change statement.

Answer 13

Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3Q Ch. 4 - Prob. 4.4Q Ch. 4 - Prob. 4.5Q Ch. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q

The income statement is a change statement. Explain what is meant by this.

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions