This is the final part of the profit and loss account. If the net profit figure is negative, the business has made a loss.

When it comes to understanding a company’s financial health, the income statement is one of the most critical tools at your disposal. Whether you’re a business owner, investor, or student, grasping ...

Also referred to as a profit and loss statement. By combining these elements, the income statement illustrates just how much income your company makes or loses during the year by subtracting cost ...

As a small business owner, understanding key accounting terms is vital for managing your finances effectively and making informed decisions. Whether you handle your own bookkeeping or work with an ...

Can an accountant do a profit and loss statement? A certified income statement requires the services of a certified public accountant. Financial statements are certified by a CPA who examines them, ...

Financial statements ... profit. This is the amount of profit earned during the normal course of operations. It is computed by subtracting the operating expenses from the gross profit. Other ...

Working from the top line items in the income statement, cost of goods sold is subtracted from revenue, and the difference is gross profit. All operating costs subtracted from gross profit lead to ...