INTRODUCTION TO INCOME STATEMENT The Income Statement summarizes the revenues and the expenses of a corporation for an accounting period. This period could be a quarter, a month or a…

EXPLANATION OF VARIOUS HEADS ON INCOME STATEMENT The format of income statements may vary depending on operational complexities of the organization. However, more or less each income statement generated as…

INCOME STATEMENT FORMATS There are multiple formats of income statements which are used by different organizations for reporting. Income statements are often accompanied by statement of retained earnings. Following section…

UNDERSTANDING BUSINESS METRICS CAPTURED ON INCOME STATEMENTS Income Statements capture numerous business metrics which can be used by shareholders' and other stakeholders to determine the financial health of an organization.…

INTRODUCTION TO CASHFLOW STATEMENT A separate document for reporting cash flows is required because of accrual basis accounting being used by most of the corporate companies for financial reporting. Under…

PREPARING OF CASHFLOW STATEMENT Cash flow statement for an organization is derived from its balance sheet and Income statement. In this article, we will be demonstrating preparation of cashflow statement…

PREPARING OF CASHFLOW STATEMENT (Contd ...) Cash flow statement for an organization is derived from its balance sheet and Income statement. In this article, we will be demonstrating preparation of…

SUMMARY FOR PREPARING CASHFLOW STATEMENT Summary of our entire discussion resulting in the preparation of Cashflow Statement is presented in this article.To re-iterate, preparing Statement of Cashflow requires us to…

RELATIONSHIP BETWEEN STATEMENT OF CASHFLOW & BALANCE SHEET Cash & cash equivalents at the end of the year as derived from a cashflow statement must be equal to the organization's…

NET PRESENT VALUE The concept is used widely by professionals for valuing liabilities and monetary assets. It is also used as a useful tool for evaluating proposals related to long…