Question: Why is an income statement divided into so many different categories? Couldnt all the revenues and all the expenses each be totaled and then subtracted

Why is an income statement divided into so many different categories? Couldn’t all the revenues and all the expenses each be totaled and then subtracted from each other to determine net income? Wouldn’t this make accounting easier to learn?

Step by Step Solution

3.20 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The income statement is organized to highlight certain information that is useful to financial state... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

157-B-A-F-A (722).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!