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Essay

Financial Statements

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Issue:

Business

 

Written by:

Johanna H

 

Date added:

November 4, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1015

 

Was viewed:

8912 times

 

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Essay content:

This report will explain the purpose of each report and identify the components of each. The first tool that I would like to discuss is the income statement. The main function of the income statement is to explain the profitability of an organization over a defined period. This period could be monthly, every three months, or the expected business cycle of one year (Block & Hirt, 2005)...
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The income statement is a stair step approach that explains the profit or loss realized by a firm after each expense is deducted. The first section of the income statement will show operating profit. Operating profit is defined as gross profit (sales less cost) less such miscellaneous expenses such as selling costs, administrative costs, and depreciation costs (Block & Hirt, 2005)...
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