Login

What are the elements of income statement ? ( need detailed explanation )

Dear Student, this topic has already been covered in the Study Material (with detail information of each and every component of Income Statements) provided to you on our site. To view, follow the link provided below. 

https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/company-accounts-and-analysis-of-financial-statements/financial-statements-of-a-company/436_2435_5900#slide3_income-statements

However, if you find any point difficult, then provide us with all the relevant details related to it so that we can help you in the best possible way. 
Keep Posting!!

  • 0
View Full Answer
HELLO NISHA, HERE IS YOUR ANSWER

  • The income statement consists of revenues and expenses along with the resulting net income or loss over a period of time due to earning activities. The income statement shows investors and management if the firm made money during the period reported.

  • The operating section of an income statement includes revenue and expenses. Revenue consists of cash inflows or other enhancements of assets of an entity, and expenses consist of cash outflows or other using-up of sssets or incurring of liabilities.

  • The non operating section includes revenues and gains from non-primary business activities, items that are either unusual or infrequent, finance costs like interest expense, and income tax expense.

  • The "bottom line" of an income statement is the net income that is calculated after subtracting the expenses from revenue. It is important to investors - also on a per share basis (as earning per share, EPS) - as it represents the profit for the accounting period attributable to the shareholders.
    hope your doubt clears.
    keep posting!!

  • 3
What are you looking for?