(B124 EMA)Prepare the income statement for Ayla King
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The Open University
Accounting (B124 EMA)
Added on 2023-05-03
About This Document
In this assignment report we will discuss about income statement below are the summaries point:-
- Financial information should be appropriate for comparison between different accounting periods.
- Similar accounting practices/policies should be used consistently.
- E.g. using different inventory valuation methods (LIFO vs FIFO) can lead to changes in financial performance analysis over time.
- Financial information should be presented clearly and be easily understandable.
- Complex financial statements can undermine the reliability of financial statements.
- E.g. Enron Corporation had complex financial statements that were not understandable, leading to its collapse.
- The accounting equation (Assets = Liabilities + Equity) forms the basis for the balance sheet and income statement.
- Income statement links to balance sheet (and vice versa) through various aspects such as depreciation on assets, net profit, and inventory.
- Profit impacts the accounting equation by affecting assets, liabilities, and equity.
(B124 EMA)Prepare the income statement for Ayla King
The Open University
Accounting (B124 EMA)
Added on 2023-05-03
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