Income Statement Line Items Explained

Otherwise a separate note provides a complete picture.

Income statement line items explained. It is sometimes called operating statement or statement of operations. On a high level statement such as exhibit 1 line items and figures represent groups of accounts primarily. Income statements also include the results of adding and subtracting figures to. For year ended dec.

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. For a manufacturer cost of sales is the. Dead simple coffee inc. Income statement accounts multi step format net sales sales or revenue.

Different items of income statement. It shows how well an organization performed during the period covered. Here s an example single step income statement we created for another hypothetical company dead simple coffee inc. When there are few sources of revenue a breakup may appear on the face of the income statement.

It adds up your total revenue then subtracts your total expenses to get your net income. The most common income statement items include. However there are several generic line items that are commonly seen in any income statement. Cost of sales cost of goods products sold cogs and cost of services.

On a more detailed income statement such as exhibit 2 below line items and figures statement are primarily account names and their end of period balances. These terms refer to the value of a company s sales of goods and services to its customers. Represents the amount earned by the company in exchange of goods it supplied and services it provided. A single step income statement is a little more straightforward.