(WIP) ACC 350 Exam 1 Study Material
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Pg. 9<br />
Sarah Allison Takash<br />
<strong>ACC</strong> <strong>350</strong>, Spring 2018<br />
<strong>Exam</strong> 1 <strong>Study</strong> <strong>Material</strong><br />
How to prepare an Income Statement<br />
Summary:<br />
An income statement measures the success of a company over a given period of time. It<br />
summarizes the transactions that result in net income (i.e. revenue, expense, gain and loss<br />
transactions). It can classify income by categories such as by product, customer, operating, or<br />
non-operating income. Determinations and predictions can be made about aspects of the company<br />
from analyzation of the income statement (e.g. profitability, level of risk, and timing of future cash<br />
flows).<br />
● <strong>Exam</strong>ple simple format of an income statement (below):