Article · Tutorial

Income Statement (explanation)

AccountingCoach · accountingcoach.com Free Beginner

A free tutorial by a CPA that walks through the income statement line by line, including the accrual rule: income when earned, expenses when incurred.

  • Record revenue when earned and expenses when incurred, not when cash moves.
  • Separate operating from non-operating items.
  • A profit on the P&L is not the same as cash in the bank.
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The question it answers

  1. How do I make a profit and loss statement for my business?

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