Preparing an Income Statement
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vertical analysis
reporting an amount on a financial statement as a percentage of another item on the same financial statement
ratio analysis
the calculation and interpretation of a financial ratio
Total expenses ratio
total expenses divided by total sales
Heading of an Income Statement
Company Income Statement For Month Ended January 31,20--
Total Income ratio
Total income divided by total sales
Financial Ratio
a comparison between two components of financial information
Financial Accounting
accounting information and analyses prepared for external users
Managerial Accounting
accounting used to provide information and analyses to internal users
