A comparative income statement will consist of two or three columns of amounts appearing to the right of the account titles or descriptions. For example, the income statement for the year 2010 will report to the right of the word Revenues the amounts for each of the years 2010, 2009, and 2008. As a courtesy to the reader, the amounts from the most recent period are in the column closest to the titles. The older amounts are deemed to be less significant and thus appear furthest from the titles.
A comparative income statement gives the reader a frame of reference for comparing the current year amounts.
Learn more about the Income Statement.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.
He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
Niciun comentariu:
Trimiteți un comentariu