ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For a business plan, the income statement should be generated on a monthly basis during the first year, quarterly for the second and annually for the third. An income statement lists financial projections in the following format: Income includes all revenue streams generated by the business.

Detailed explanation-2: -Frequent reports: While other financial statements are published annually, the income statement is generated either quarterly or monthly. Due to this, business owners and investors can track the performance of the business closely and make informed decisions.

Detailed explanation-3: -The first step in preparing an income statement is to choose the reporting period your report will cover. Businesses typically choose to report their income statement on an annual, quarterly or monthly basis.

Detailed explanation-4: -An income statement is a financial report detailing a company’s income and expenses over a reporting period. It can also be referred to as a profit and loss (P&L) statement and is typically prepared quarterly or annually.

Detailed explanation-5: -The income statement, which comes with a financial statement, tells an entrepreneur what the result of the company is and how it happened. The income statement shows the income that has come into the company and how money has been spent.