Income Statement Heading Example

Would have the following heading.

Income statement heading example. The heading of the income statement conveys critical information. When gains and losses are reported on an income statement they are generally separately disclosed because knowledge of them is useful for assessing future cash flows. All income statements have a heading that display s the company name title of the statement and the time period of the report. In the budgeted income statement example above we can see that the actual profit for the period is about 8 500 less than what was planned for.

Paul s guitar shop inc. Year ended may 31 five months ended. For example an annual income statement issued by paul s guitar shop inc. For the year ended december 31 2015.

This was due to the income being 5 400 less 100 000 94 600 and the expenses such as water and electricity being greater than expected. For example when mcdonald s usa sells a hamburger it records the selling price as revenue. Since income statements can be prepared for any period of time you must inform the reader of the precise period of time being covered.