Finance for Nonfinancial Managers, Second Edition (Briefcase Books Series), 2nd Edition

The Income Statement: The Flow of Progress

You’ll remember we identified the Income Statement as a report that tallies the cumulative effect of all the income and expense transactions that occurred during a given period, i.e., between two balance sheet dates. Those transactions typically have the goal of producing a profit for the company. The income statement shows the company’s success in achieving that objective.

They Say Timing Is Everything—And They’re Right!

The Income Statement is the report most nonfinancial managers readily recognize. They know it shows whether the business made a profit for the month, the quarter, or the year. In large ...