MANAGEMENT

Detailed explanation-1: -The income statement provides a financial summary of a company’s operating results during a specified period. Although they are prepared annually for reporting purposes, they are generally computed monthly by management and quarterly for tax purposes.

Detailed explanation-2: -The Balance Sheet shows the financial position (condition) of the firm at a given point of time. It provides a snapshot that may be regarded as a static picture. “Balance sheet is a summary of a firm’s financial position on a given date that shows Total assets = Total liabilities + Owner’s equity.”

Detailed explanation-3: -The income statement makes public the results of a company’s business operations for a particular quarter or year. Through the income statement, you can witness the inflow of new assets into a business and measure the outflows incurred to produce revenue.

Detailed explanation-4: -The Income Statement It shows the results of an entity’s operations and financial activities for the reporting period. It usually contains the results for either the past month or the past year, and may include several periods for comparison purposes.

Detailed explanation-5: -A balance sheet provides a snapshot of a firm’s financial position at a specific point in time, while an income statement – also known as a profit and loss statement – measures performance over a period of time. Accounting software helps to manage both of these financial statements.