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45 votes
Identify four advantages of an income statement I will give 100 points best answer as brilliant answer ​

User Mitul Shah
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12 votes

Answer:

An income statement helps you gain information related to the revenues earned by an organization.

It helps in analyzing if the company is financially healthy in a specific period of time, reducing the time needed for investors to research.

It helps in tracking the performance od the company, whether it is earning profit or if there is something wrong and needs to be fixed.

It measures the success or failure of specific budget areas, so while it helps in determining if a company is financially healthy overall, it also helps determining the health of specific departments and seeing their performance.

Most importantly, it provides and overview of your company's cash flow which is very important. You need to have an idea where money is coming from and where it is going so that you can make adjustments when necessary and cut down on costs as well.

User Zibbobz
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