If the income reported on an employee’s tax return is less than the income reported on Form W-2, the IRS may audit the taxpayer. Taxpayers must report all salary, wage, and tip income even if ...

Below is the 2021 quarterly income statement from Ford's Form 10-Q. One of the first things that you will notice is that the report is using horizontal analysis.

Assets represent future income, and under absorption costing the income statement may show a higher asset value than the company actually has. For example, the company produced 600 units at a cost ...

An income statement simply displays the company’s revenues and expenses, providing investors with an array of information that can be used to gauge its value. Image source: The Motley Fool.