Companies prepare an income summary and an income statement at the end of an accounting period. While an income summary is a clearing account used to close income-statement accounts at the end of a ...

Preparing a financial statement is the last step in the accounting cycle before the cycle starts over in a new period. After the accounts have been adjusted and closed, the financial statements are ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

For many businesses, tracking financial performance is essential, but not every company opts for expensive accounting software to do so. Instead, a significant number rely on Microsoft Excel to ...

Understanding cash flow statements is important because they measure whether a company generates enough cash to meet its operating expenses.