Under accounting guidelines, a company may prepare its income statement under the single-step method or the multiple-step method. Also known as a statement of profit and loss, an income statement ...

General accepted accounting principles (GAAP) recommend that businesses use an accrual method of accounting. This means that the income statement reflects expenses and income earned but not yet ...

A financial document generated monthly and/or annually that reports the earnings of a company by stating all relevant revenues (or gross income) and expenses in order to calculate net income. Also ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

Michael Schmidt, CFA, is a staff member of FINRA's Dispute Resolution Board with 20+ years of experience in the financial market. SDI Productions / Getty Images Operating cash flow is cash generated ...

The general tax rules for income recognition under an accrual method of accounting were changed in the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, which added new Secs. 451(b) and (c).

Income statements reveal a company's revenues and expenses, aiding investment analysis. Key metrics like gross profit margin and EPS inform on company profitability and health. Analyzing changes in ...