HTML Preview Simple Accounting Income Statement page number 1.
Chapter 2
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2.1 Chapter Overview
2.2 The Income Statement
2.3 The Balance Sheet
2.4 The Importance of Accounting for Business Operations
After studying Chapter 2, you should be able to:
• Construct a basic income statement.
• Identify and define each item on a basic income statement.
• Construct a basic balance sheet.
• Identify and define each item on a basic balance sheet.
• Describe the difference between accounting data and cash.
• Explain the importance of accounting to a business.
• Identify the major ways in which a firm may legally manipulate its financial data.