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Published by:
Ivey Publishing (2021)
Version:
2021-04-12
Revision date:
24-May-2021
Length:
2 pages
Data source:
Published sources

Abstract

If you can understand football scoring or read a recipe, you can understand an income statement, with the help of this note. It is important to understand an income statement because it tells investors or any stakeholder of a company whether or not the company is making money. An income statement also gives information to company managers to make better forecasts and decisions.

Teaching and learning

This item is suitable for undergraduate courses.

Topics

Income statement; Profitability; Net income; EBIT; Accounting; Finance
Other setting(s):
2021

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