The Income Statement Quizlet

Not surprisingly the income statement is also known as the profit and loss statement.

The income statement quizlet. An income statement is one of the three important financial statements used for reporting a company s financial performance over a specific accounting period with the other two key statements. Learn vocabulary terms and more with flashcards games and other study tools. The income statement indicates whether the company is profitable but this might not explain whether cash increased or decreased the income statement does not directly measure the change in value of a company during the period estimation plays a key role when measuring income. Start studying financial accounting income statement.

In a single step income statement total revenue is the sum of all revenues including net sales revenue 187 000 plus interest revenue 10 200 plus gain on sale of equipment 4 700 or 201 900. Results from discontinued operations are reported at the end of the income statement. The income statement is a report showing the profit or loss for a business during a period as well as the incomes and expenses that resulted in this overall profit or loss. What is the purpose of the income statement.

The income statement reports economic events that happened during a period to earn income. The purpose of the income statement is to provide information about the uses of funds in the income process i e expenses the uses of funds that will never be used to earn income i e losses the sources of funds created by those expenses i e revenues and the sources of funds not associated with the earnings process i e gains. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. A report on the profitability of operations including revenues earned and expenses incurred in generating the revenues for the period of time covered by the statement.

Increases in assets and reduction in liabilities or a combination of both. Learn vocabulary terms and more with flashcards games and other study tools. Resulting from incidintal transactions.