What is the purpose of income statement ?

The purpose of income statement is to explain the managers and investors that company made or lost money during the period reported. It helps to mitigate cost and to build strategy to increase profits in the coming financial year.

Income statement is very important concept

The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported. One important thing to remember about an income statement is that it represents a period of time like the cash flow statement and also The purpose of the income statement is to show the reader how much profit or loss an organisation generated during the finiancial year

 

Income Statement is necessary for all business entity. It shows the growth and profitability of business.

In one word " It is a Health Report of the Company".

 

 

The purpose of income statement is to be able to gauge the financial performance of a company or an entity in a given period of time. It'll help you measure the stability of an entity, hence, play a big part in making business decisions. 

To compute profit & loss of a company and Income tax assessment 

The Purpose of Income Statement is to reflect the profit and loss of any company and Income tax situation.

An income statement is important in a company because it shows to the stakeholders a true and faire view of the company's position whether it is making profit or a loss, Hence encouraging investors amd also the employees to know their efficiency

know aboutprofit and loss of business

The prime objective of income statement is match the expenses of a one year period against the revenue of that period to determine the income or loss of that period.

to remind you have you have a lot of payments :D

It shows financially where the establishment stands for employees, investors and managements.