MANAGEMENT

Detailed explanation-1: -The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted.

Detailed explanation-2: -Income statement. The income statement, which is sometimes called the statement of earnings or statement of operations, is prepared first. It lists revenues and expenses and calculates the company’s net income or net loss for a period of time. Net income means total revenues are greater than total expenses.

Detailed explanation-3: -Listed companies follow the multiple-step income statement, which segregates the operating revenue, operating expenses, and gains from the nonoperating revenue, nonoperating expenses, and losses, and offers many more details through the income statement produced this way.

Detailed explanation-4: -Profit is an absolute number which is equal to revenue minus expenses. Profitability, on the other hand, is a relative number (a percentage) which is equal to the ratio between profit and revenue. Profitability is a measure of efficiency and it is useful in determining the success or failure of a business.