Projected Income Statement Quizlet

Projecting income statement line items.

Projected income statement quizlet. C preparing projected financial statements must incorporate a company s current performance records d the income statement demonstrates immediate capability to service debt for banks or real potential for growth in returns for venture capital. Learn vocabulary terms and more with flashcards games and other study tools. Qn 01 when preparing a projected income statement which of the following additional information other then the financial statements would probably not be relevant. New versus old store mix c.

Financial statements such as balance sheets are as useful in personal finance as they are in business finance. The competitive environment b. Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue. 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.

Expected capital expenditure d. B preparing projected financial statements must incorporate a company s past performance records. Examples guide it becomes necessary to get into the habit of projecting income statement line items. Three commonly used financial statements are the income statement the cash flow statement and the balance sheet.

Being able to project the main line items of the income. Start studying chapter 7. Start studying bu247 managerial accounting. 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.

Projected future value consequences of choices scenarios for financial planning. Download free version doc format download free version xls format my safe download promise. The income statement and use. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc.

Expected level of macroeconomic activity. 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. Downloads are subject to this site s term of use. This projected income statement will assist you in forecasting the income you can expect over a twelve month period.