What is purpose of an income statement for a retail business

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You are an accountant for a small retail store and are tasked with determining your income statement's best presentation. You may choose to present it in a multi-step format or a simple income statement format. Investors, lenders will use the information on the statement and management to make financial decisions related to your company. It is important to the store owners to give enough information to assist management with decision-making, but not too much information to possibly deter investors or lenders. As you begin to create a presentation, consider the following:

Problem 1:
What is the purpose of an income statement for a retail business?

Problem 2:
Which statement format do you choose?

Problem 3:
Why did you choose this format?

Problem 4:
What are the benefits and challenges of your statement choice for each stakeholder group?

Reference no: EM132803473

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