The financial make up of a business defines the strength of the business and it displays how well a business is received in the market place and in some cases how a business is received in the stock market as well. There is a lot of emphasis in the business arena regarding organizations exhibiting good customer service skills. There should be more or equal emphasis on implementing, reviewing and revising financial statement/forms for the strength of the business. Many business experience failure, not because the owner and staff are not committed, but, failure can come from lack of knowledge regarding financial statements.
Financial statements, often, are not easy to understand and use. So, it is important for employers to ensure that …show more content…
Company/organizations must ensure that managers, comptrollers and chief financial officers are meeting on a regular basis to have a discuss about profits and loss that will appear on monthly income statements.
According to an article entitled, Income Statement Format, Components, and
Purpose, “the format of the income statement components allows for dissecting the revenues, expenses, operating income, and profits of an entity” It further states that income statement is one of three critical company financial statements for investor analysis. Regardless of how a company/organization defines an income statement, the use of income statements must be a familiar tool to all managers, leaders chief financial officer and other financial professionals.
MAJOR TYPES OF EXPENSES THAT ARE SHOWN ON THE TYPICAL INCOME STATEMENT
According to an article entitled, “ Income Statement”, the major types of expenses that are shown on the typical income statement are as follows: