How often does a company prepare the profit or loss summary (i.e. income statement)?
The company should prepare the profit or loss summary as often as needed to understand trends in the business and make decisions. Most companies prepare the income statement on a monthly, quarterly, and annual basis. For a monthly income statement, the profit or loss would represent the activity in that month. For a quarterly statement, the profit or loss represents activity in that quarter (i.e. Jan-Mar = Q1). For an annual statement, the profit or loss represents activity based on the calendar year or fiscal calendar (whichever the company follows).
Back To All Questions