Understanding the Simple Income Statement

The Simple Income Statement (R10211B) tracks revenues and expenses and the net income or loss for a specific period of time. To print a simple income statement, all of your profit and loss accounts must be grouped together in your chart of accounts and cannot be interrupted by any balance sheet accounts.

The system uses AAI item FSxx to establish the optimal interim totals on the income statement. Some examples of special interim totals include:

• Gross Margin

• Net Profit Before Taxes

• Net Income (Loss)