Describe the methods of preparing income statements


Response to the following :

It is the end of a reporting period. Because there are more people than usual retiring this year, your manager has asked your accounting department to create 2 things:

? A process documentation detailing the different methods of preparing income statements, specific sections of the income statement, and how to handle the special types of income statement items

? Basic financial statements for your company

Individual Portion:

1. Visit the SEC's Web site, if link does not work do Sec.gov

? Select a company filing of your choice that contains a multiple-step income statement.

? Communicate your selection with your group (each of you should submit a different company).

? Submit the link to this filing as proof of your research.

2. Prepare a process documentation that

? is prepared in a professional manner because it will be the desktop guide used by others in the event of your absence to prepare the financial statements for Music Warehouse.

? is in the form of a memorandum or as a numbered listing of items, depending on your individual preference.

? includes the following elements:

¦ a definition and description of the specific sections of the income statement

¦ a description of the different methods of preparing income statements

¦ an explanation of the conceptual guidelines for reporting income

¦ how to handle the special types of income statement items.

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Managerial Accounting: Describe the methods of preparing income statements
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