Define the income statement

Question

Question 1. Define the income statement. Can it be manipulated? Explain(expand on your response)

Question 2. Define the earnings per share and price earnings ratios. How do they affect the stock price? (expand on your response

Question 3. Define materiality. Provide an example.

Reference:

Introduction to Financial Accounting, 11/E, Charles T. Horngren, Stanford University, Gary L. Sundem, University of Washington, John A. Elliott, Baruch College, The City University of New York, Donna Philbrick, Portland State University,ISBN-10: 0133489361 | ISBN-13: 9780133489361 ©2014 • Prentice Hall