Income Statement Flashcards
1
Q
What is the purpose of the income statement?
A
To provide information about the uses of funds in the income process, the uses of funds that will never be used to earn income, the sources of funds created by those expenses, and the sources of funds not associated with the earnings process.
2
Q
What is the presentation order of the major components of an income and retained earnings statement?
IDEA
A
Income Statement
INCOME (or loss) from continuing operations
Income (or loss) from DISCONTINUED operations
EXTRAORDINARY items
Retained Earnings Statement
Cumulative effect of a change in ACCOUNTING principal
