Income Statement II

In my last post I showed a very simplified graphic of the Income Statement to emphasize that it is a “Flow” statement as opposed to the “Static” nature of the Balance Sheet.  And by the way, the Income Statement is generally considered the more important of the two. This is because (1) it covers a…

Income Statement – I

Continuing our discussion of the basic financial statements, although in very simplistic forms, we now give you a glance at the main components of the Income Statement. The important thing to note is that unlike the Balance Sheet, which shows values at a certain date in time, the Income Statement is a “flow” statement … that…