Accounting is the language of business.  The mode of communication for businesses is financial statements, one of which is the income statement.  What is the purpose of the income statement?  How as an accounting professional (CPA) would you describe an income statement to a client?  There are three main sections of the income statement.  Why does a company report figures for each of these sections rather than disclosing a single net income figure?  What do each of these sections communicate to stakeholders?
 

What does the earnings per share figure(s) communicate to stakeholders?  What is the theory behind disclosing such figure?  Some companies present basic and diluted EPS.  Discuss this concept.  Why and when is DEPS disclosed?  What additional information does this figure provide users of financial statements in addition to BEPS?  Discuss the concept of anti-dilutive EPS.