Accounting for IGCSE & O level - Final Statements (Section 10 - No. 22)
What is the main difference between the two sections of an income statement?
One calculates gross profit and the other, the profit for the year.
One lists assets and liabilities, and the other lists revenues and expenses.
One deals with sales, and the other with purchases.
One is for large businesses and the other for small businesses.
Paliwanag
The Trading Account is used for determining gross profit, while the rest of the income statement focuses on profit for the year.