Loss and Profit Statement

Reveune and Expenses Statement

The Profit or Loss Statement

The Income Statement

comparability and understandability

relevance and reliability

relevance and understandability

comparability and relevance

calculate profit or loss

provide information in an informative manner

Revenue less expenses

When a business makes a profit

a comparison of profit earned with an investment made

when revenue is higher than expenses

profit greater than assets

assets greater than profit

a comparison of total profit to total assets

a measure of the owner's investment