Income And Expenditure Statement Meaning

Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue.

Income and expenditure statement meaning. It is prepared as a part of final accounts of non trading concerns and is equivalent to profit and loss account prepared by for profit business enterprises. One of the goals of the income and expenditure statement is to create a tool that is helpful with the task of financial management. The definition of income and expenditures encompasses different areas and types of transactions as different professional disciplines see them in ways relevant to their specific situations. The income and expenditure statement is a summary of all items of income and expenses which relate to the ongoing accounting year.

An income and expenditure statement is designed to identify all forms of income and expenses within a given period of time. The income and expenditure account is a summary of all items of incomes and expenses which relate to the ongoing accounting year. Income and expenditure account. Understanding them enables more accuracy.

The income statement also called a profit and loss statement is one of the major financial statements issued by businesses along with the balance sheet and cash flow statement. To this end all types of income and expenditures relevant to the period are taken into. Income and expenditures are the foundation of any business. Sample income and expenditure statement statement of financial performance income 2008 2007 grants federal government 56 000 32 000 grants state government 48 000 0 grants local government 42 000 36 000 grants philanthropic 37 400 55 150 sponsorship 24 000 14 900.

The income and expenditure account is an account prepared by non trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. It is prepared with the objective of finding out the surplus or deficit arising out of current incomes over current expenses.