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Topic: Business
Number of pages / Number of words: 5 / 1224
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It presents the details of the earnings achieved for the period. The income statement separately itemizes revenues and expenses, which result from the company's ongoing major or central operations, and the gains and losses arising from incidental or peripheral transactions.

Certain irregular items (such as discontinued operations, extraordinary items, effects of accounting changes) are presented separately, net of tax effect, at the end of the statement...


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When revenues and gains exceed expenses and losses, net income is realized. Net income for the period increases equity.

The results of the firm's operating activities for the period as presented in the income statement provide information that can be used to predict the amount, timing, and uncertainty of future cash flows...


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