What are the financial statements used for?

Answer 1

It shows the income of one company as well as the expense incurred under the production,selling and administration department.

it can be seen/determine here in the income statement if the expenses is greater than the sales. And therefore, if it does there is net loss.

Answer 2

An income statement is prepared to show the companies net income (or loss) after all expenses are deducted for a given period of time.

this equation is

Revenue - Expenses = Net Income (or loss) also referred to as net profit.

Answer 3

The meaning of the income statement is to show a company's income and expenses over a period of time. An income statement will show is the company profitable over a period of time or are they going into further debt.

Answer 4

Budgets help people reach their financial goals.

Answer 5

To evaluate the success of the business to the owners of the business. To assist the owners and managers of the business to plan for future growth and optimize the business value.