IS summarizes a company's revenues (sales) and expenses quarterly and annually for its fiscal year.
Also known as "statement of income", "statement of earning", "statement of operations", and
"profit and loss (P&L) statement"
Two basic formats - (1) multi-step format and (2) single-step format.
*The differences:
In the multi-step IS, four measures of profitability are revealed at four critical junctions
in a company's operations - gross, operating, pretax and net income (after tax).
In the single-step IS, the gross and operating income figures are not stated,
nevertheless, they can be calculated from the data provided.
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