Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Companies often follow the generally accepted accounting principles of the United States when preparing their books. Recording income according to GAAP ensures the information a company keeps is ready ...

To calculate pretax accounting income, subtract a company's total revenues from total expenses. Revenues come from sales, investment gains and vendor refunds. Expenses may be operating or nonoperating ...

An income statement presents the results of a company’s operations for a given period—a quarter, a year, etc. The income statement presents a summary of the revenues, gains, expenses, losses, and net ...

Accrual and cash basis methods recognize revenue and expenses at different times. Here are the advantages and disadvantages ...

One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a ...