Income Statement
Guiding Principles Revenue is recognized when the activity that generates it is fully or essentially complete. There must be a level of certainty that payment will be received. Expenses associated with the revenue should be booked to the same time period 01 02 03 04
• Revenue (Sales, or Income) • Expenses • Net Income (Profit) (= Revenue – Expense)
The income statement describes activity over a period of time
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THE PRINCIPALS ACADEMY 2022
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