As A Financial Accountant, Determine The Best Type Of Income

An income statement is a financial statement that that businesses use to evaluate their financial performance within a specific accounting period. It summarizes how the company acquires its revenues spends it through operating and non-operating activities (O'Bryan, 2010). The best income statement for a retail business is the Multiple-Step Income Statement because its shows the gross profit, and operating profit. The gross profit is the measure of net sales minus the cost of goods sold, while operating profit is profit from business operations. The two are very important in determining the financial health of the company. The common inventory valuation methods are the first-in first-out (FIFO), last-in first-out (LIFO). The FIFI inventory valuation assumes that inventory purchased first is sold first. LIFO, on the contrary assumes that inventory purchased last are sold first (Aiello, 2008, p. 105). The two have their advantages and disadvantages. However, I believe FIFO if better than LIFO because it is easier to apply, the inventory assumes the current market value and it is not possible to manipulate income.Internal controls are measures that a company takes to reduce the opportunity of committing a fraud. The two internal controls that a coworker may attempt to circumvent in