Also known as a profit and loss statement, an income statement helps business owners design yearly budgets, set future financial goals and decide whether to expand a business. A multiple-step income ...

Depreciation spreads the cost of tangible assets over their useful life on income statements. Each year, $1,500 is recorded as a depreciation expense, reducing the asset's book value. Amortization and ...

A business generates revenue by completing the customer's request to purchase the business's products or services. The income generated from the company's sales represents its revenue, while the ...