When I hold exploratory meetings with clients, I typically ask about various items on the profit and loss (P&L) — also called ...

Gross profit and EBITDA both show the profitability of a company but they do it in different ways. Know what goes into each ...

Examples include the purchase of production equipment and machinery ... the accrual basis of accounting used to prepare the income statement and balance sheet back to a cash basis.

From there, most of the items listed on the income statement relate to expenses, such as the cost of goods sold—namely expenses for materials—tied to the production and sale of goods and services.