Earnings – Different Income Statement Formats Assignment Help
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Income statements – types of formats
For scoring proper grades it is important to first understand the topic. Popular formats to be taken note of when it comes to income statements are as follows:
- Comparative income statement
Here the simultaneous presentation of figures of the statements in previous quarters is shown for convenience of comparison. The top leaders can then take note the changes, both positive and negative over a period of time.
- Single-step income
This method is popular among small companies. In this method presentation of two main factors are provided – revenue and expenses. Using earnings – different income statement formats assignment help more discussions can take place on this topic.
- Contribution margins
Such a format expresses only the variable costs in goods price column; other expenses are shown later on in the report. Breakeven point of business has been calculated in this manner.
- Classified income statement
Multiple steps are simultaneously used in this type of calculation. The subtotals of operating and non-operative statements are taken into consideration. Gross margins are also counted.
- Partially stating income
When new businesses come up, income statements are of this nature. Earning of a fixed time period is reflected in this statement. Suppose a new entrepreneurial company has been established, the report created after only a period of two months will reflect such a statement.
- Condensed statement
Instead of elaborate presentation of earnings – different income statement formats homework help experts state that this method presents all the facts in short. All facts are displayed but in a condensed or holistic manner.
- Cash-based statements
Here revenues received from customers and expenses paid to suppliers are the only two points in focus. The results regarding this statement can be drastically different from the actual presentation of data using the rules of finance or accounting.
The above points describe common formats involved in preparation and presentation of information regarding statements. For more clarity taking help should be a smart option!
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