Income Statement Tutorial Pdf

You will become familiar with accounting debits and credits as we show you how to record transactions.

Income statement tutorial pdf. The income statement and balance sheet accounting. The income statement and balance sheet. Balance sheet assets liabilities and shareholder s equity 2. Boc hong s in come statement includes all of the major items in the list above except for discontin ued operations.

You will also see. The income statement shows all the revenue or income generated for the period less all expenses arriving at the period s profit or loss. Accounts payable a p a p represents expenses not yet paid that are included as. The period can be a quarter if it is a quarterly income statement or a year if it is an annual report.

Some of the basic accounting terms that you will learn include revenues expenses assets liabilities income statement balance sheet and statement of cash flows. The net assets equal the capital and reserves in the. Any decrease in a r over the period needs to be added back to net income on the cash flow statement. Net assets are total assets less total liabilities.

Any increase in a r over the period needs to be deducted from net income on the cash flow statement. An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a. The other key thing at the top of the income statement is to tell you whether the amounts shown are actual dollars down to the penny or whether these are truncated numbers. The income statement profit and loss report and the balance sheet these reports show a company s financial make up its profitability and summarize the values of the accounts in the.

C multiple step income statement. B balanced income statement. The next is the income statement shown in figure 3 2 which provides information on the revenues and expenses of the firm and the resulting income made by the firm during a period. Financial statements tutorial there are four major financial statements used to communicate information to external users creditors investors suppliers etc 1.

D simplified income statement. Expenses that support the overall operations of a business and include the. Chapter 4 income statement and related information 4 3 illustration illustration 4 2 presents an income statement for boc hong company. Slide 12 example 2.

Income statement revenues and expenses 3. Revenue on the income statement. If you already have a grasp of the definition of the balance sheet and the structure of an income statement this tutorial will give you a deeper understanding of how to analyze these reports. Visual tutorials exam questions and forms to assist you.

A single step income statement. This tutorial focuses on the two most important financial reports in accounting. The aim of this tutorial is to answer these questions by providing a succinct yet advanced overview of financial statements analysis.