What is income statement? Why do we need I/S? Compared with balance sheet, does I/S enhance the information of financial reporting, why or why not?
What is income statement? Why do we need I/S? Compared with balance sheet, does I/S enhance the information of financial reporting, why or why not?
In contrast and comparison with statement of cash flows, what are the advantages and disadvantages of I/S?
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What are the basic structures of income statement? Why do we have two types of formats, and what are the advantages and disadvantages of each?
Why is the sales listed as the major component of revenue? What components does it have? When recognize sales/revenue, what are the major conditions that must be met? If not met, how do we treat these situations?
What are the major categories of expenses? Why do we need to classify them into at least operational or others? What are the major principles we follow through to recognize expenses?
Why do we have special items in I/S? What are the major features of these accounts? Do you agree with the treatments the textbook discusses, why and why not?
What dividend policies may a company have? List the major types, and discuss the potential advantages and disadvantages.
What are the comprehensive incomes? Illustrate your points to show their treatments and their differences/similarities with traditional net income.
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