Income Statement Items List

Income statement balance sheet preparation use the appropriate items from the following list to prepare in good form owen davis company s income statement and balance sheet at dec 31 2003 item value rm 000 at december 31 2003 accounts payable 220 accounts receivable 450 accruals 55 accumulated depreciation 265 buildings 225 cash 215.

Income statement items list. The income statement shows the business s income expenses gains and losses. However there are several generic line items that are commonly seen in any income statement. These accounts are usually positioned in the general ledger after the accounts used to compile the balance sheet a larger organization may have hundreds or even thousands of income statement accounts in order to track the revenues and. The line items usually included in this section are.

Interest income and interest expense. The income statement may have minor variations between different companies as expenses and income will be dependent on the type of operations or business conducted. What are income statement accounts. Generally accepted accounting practices gaap also refer to this report as statement of income because the income statement shows.

Gain loss on sale of assets. 3 3 1 income statement items. A classified income statement organizes information better than a single step income statement where revenue and expense line items are simply listed in sequence with no attempt to present sub totals. When building a three statement model 3 statement model a 3 statement model links the income statement balance sheet and cash flow statement into one dynamically connected financial model.

After sales revenue has been listed on the income statement for the accounting period you list the cost of goods sold or cost of sales. Projecting income statement line items. 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. Being able to project the main line items of the income.

The cost of goods sold generally represents production related expenses or the expenses associated with creating revenue. Income statement accounts are those accounts in the general ledger that are used in a firm s profit and loss statement. Examples guide it becomes necessary to get into the habit of projecting income statement line items. Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue.

The most common income statement items include.