When would we call the Income Statement the Statement of Operations and when would we call...

When would we call the Income Statement the Statement of Operations and when would we call the Balance Sheet the Statement of Financial Position?

Expert Solution

Basically Statement of operation is referred mainly in U.S markets whereas in other markets Statement of operations is often termed as income statement.

Apart from the Semantics there is not much difference between Income statement and statement of operations. Statement of operation is just another name for income statement reason being main income of company is to be analysed after deduction of Operating expenses, thus came the word statement of Operation. As operating expenses are those expenses which are incurred on the basis of operational activities of the company thus emphasising more on Statement of operation.

Statemen of financial position and Balance sheet doesn't hold any difference as it is used to tell the financial position of the company as of date. Except for naming balance sheet and Statement of financial position are same. Both have 3 main parts Assets, Liability and Equity.

ekkarill92 answered 1 year ago

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