A legal doctrine that holds an individual or business accountable for damages whether or not it was at fault. In a strict liability case, no matter how careful the business is in its product or service, if harm results from use, the individual or business is liable.
Along with the balance sheet, cash flow statement and the statement of changes in ownersâ equity, the income statement is also one of the essential means of financial reporting. It indicates whether or not the firm has made money during the period reported.
Creating an Income Statement. 1  1. Identify all of the income statement accounts on your general ledger. 2  2. Create a spreadsheet document in a spreadsheet software program or a columnar pad, if you are preparing a handwritten financial statement. 3  3. Create a subheading called &ldquo;Income&rdquo; in the left-most column on the document.