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Financial Statement Analysis and Valuation 6th Edition

Financial Statement Analysis and Valuation (6th Edition)

Book Edition6th Edition
Author(s)Easton, McAnally
PublisherCambridge Publishing , Inc.
Interpreting An Income Statement
Interpreting A Statement of Cash Flow
Analysing Transactions and Adjustments
Section ACS2: Accounting Cycle Step 2—Prepare Accounting Adjustments
Section ACS3: Accounting Cycle Step 3—Prepare Financial Statements
Section ACS4: Accounting Cycle Step 4–Close the Books

Chapter 2, Interpreting An Income Statement, Review, Exercise 2-2

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The income statement shows all the income and expenses of the firm during the current period. These incomes and expenses are of recurring nature. The income of non-recurring nature can be capital receipt which is recorded in the balance sheet under the liabilities. Similarly, the expenses of non-recurring nature are called capital expenditure and are recorded under the assets in the balance sheet.

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