1. What is the concept of income statement?
1. The income statement is an accounting statement that reflects the production and operation results of an enterprise in a certain accounting period (such as monthly, quarterly, semi-annual or annual). The operating results of an enterprise in a certain accounting period may be profit or loss, so the income statement is also called the income statement. Fully reveal all kinds of income, expenses, costs or expenses realized by the enterprise in a certain period, as well as the profits or losses realized by the enterprise. 2. The income statement is compiled according to the basic relationship of "income-expense = profit", and its specific content depends on accounting elements such as income, expense and profit and their contents. The items in the income statement are the concrete embodiment of the elements of income, expenses and profits. From the perspective of reflecting the movement of enterprise operating funds, it is a kind of statement reflecting the dynamic performance of enterprise operating funds, which mainly provides information about enterprise operating results and belongs to dynamic accounting statements.
2. What is the function of the income statement?
1. The income statement can reflect the income realization of the enterprise in a certain accounting period, that is, how much income has been realized by the main business, how much income has been realized by other businesses, how much income has been realized by investment, how much income has been realized by non-business and so on.
2. It can reflect the expenses in a certain accounting period, that is, how many main business costs, main business taxes, sales expenses, management expenses, financial expenses and non-operating expenses are consumed.
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