The vertical income statement, which is one of the main income statements of accounting, is the one that is accepted all across the world. Nevertheless, this vertical form is not compatible with the principles of double entry accounting system. The first usage of vertical income statement started in the second half of 19th century. The emergence of managerial accounting occurred at the same period. In the years of First World War (1917), the banks were not only examining the balance sheets of risky customers before lending credits, they were also putting forward the relationship between the profits and sales. As a result of this, the vertical income statements started to be applied. In the beginning, the vertical income satement was based on a system which was arranged as sales, gross magrin from the top to the bottom. This system has developed during the 20th century and has reached its today’s shape. During this development period, the vertical income statement has advanced together with managerial accounting. This was because the vertical income statement system was compatible with financial analysis techniques.
Alan : Sosyal, Beşeri ve İdari Bilimler
Dergi Türü : Uluslararası
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