Why is Income statement prepared?

Answer Posted / jitendra kumar mishra

Actually income statement is prepared for the purpose of to
know real profit or loss during the accounting period. it
also disclose what comes and what goes out during that
period.

Is This Answer Correct ?    4 Yes 5 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

what is special purpose ledger in SAP.. is it required to configure in ECC 6.0 since New GL concept is active?

1608


Why some asset accounts have a credit balance?

651


Define public accounting?

657


Tell us did you use accounting applications at your previous companies or prefer working manually?

614


Follow up ageing balances of Debtors & Creditors and also Inventory

1645






Have you ever heard about tds, what it is?

685


What is the general entry for charge on bank overdraft

966


Capital secure should be shown in which side of the balance sheet?

1895


Define balancing in accounting?

569


As an importer of goods through letter of credit, (payment is done through indian bank to foreign back), my question is who is liable to pay with holding tax when the payment is remitted to foreign bank, whether the buyer(importer) or the seller and why?

1487


Tell me under the accrual basis of accounting, when revenues are reported in the accounting period?

3543


what are the steps for the payment cycle of the firm or company?

1601


What is vendor?

676


What is Debit Note and Credit Note? Subsidory Books? Minority Interest? Stock recording in P&L? Outstanding Expenses, Prepaid Expenses and Examples?

2947


Explain me what makes a successful account manager?

632