General accepted accounting principles (GAAP) recommend that businesses use an accrual method of accounting. This means that the income statement reflects expenses and income earned but not yet ...

Learn about consolidated financial statements, the criteria for aggregation, reporting guidelines, and practical examples for parent companies with subsidiaries.

Explore the key differences between successful-efforts and full-cost accounting methods for oil and gas companies, including their impact on expenses and financial transparency.

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Create and customize an income statement to fit your business's needs, then save, print or send. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

You don’t need to be a CPA to understand your company’s financial health. You just need to know where to look. That starts with the income statement—also known as the profit and loss (P&L) ...

Start by looking at cash flow from operations, the section that tells you how much money the company’s main business is ...

The general tax rules for income recognition under an accrual method of accounting were changed in the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, which added new Secs. 451(b) and (c).

A cash flow statement is a financial report that describes the sources of a company’s cash and how that cash was spent over a specified time period. It does not include non-cash items such as ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...