Yes income in balance sheet is the same amount which is calculated in income statement if there is any difference then it may be due to distribution of net income between retained earnings and dividend.
No building is asset for business and like all other assets which shows in balance sheet building also part of balance sheet and not income statement.
It will be on the asset side under the heading of current assets in the balance sheet.
No. Income taxes payable is a liability and would show up on the balance sheet (although it might not have its own caption depending on how material the number is compared to the rest of the Company's liabilities). The income statement account that is typically "the partner" to the income taxes payable account is the current tax provision.
Purchase cost of business is not come under income statement rather it is part of balance sheet and shown there as long term assets.
Yes, an income statement is a document used to show what the businesses revenue and expenses are during a specific period. It shows where all the money has gone and where the money has come from.
When you pay back a loan or mortgage, part of each payment is interest, the rest is principal. For the interest part you would have Interest Expense, for the principal part something like Mortgage Expense.
They Don't go on the balance sheet unless they are currently earned but owed at a later date. When paid out at the time they are earned they would be assigned to the Income & Expense statement as an expense to "sales commission's Expenses". The only time they would show up on the balance sheet if they were earned but not yet paid out then they would be credited to the accounts payable column in current liabilities as maybe "sales commisions owing" against a debit to the expense account ......... expense account - sales commissions $xxxx Dr - liability account - Sales Commissions owing $xxx Cr
Assets (accrued revenue) is understated. Accrued taxes are understated (unaccrued revenue times tax rate) Retained earnings are understated (amount of revenue not accrued less the accrued income tax) Income statement revenue is understated Income tax expense is understated (unaccrued revenue times tax rate)
It depends on why you are using the financial statements. What do you want to know? How is the company using their cash? Look at the Statement of Cash Flows. Liquidity ratios, amount of debt, kinds of assets... look at the Balance Sheet. What are they selling, where do the revenues come from, what does the product cost or what other expenses do they have, what kind of profits do they have... look at the Income Statement. Ideally, all are important. Income is fine, but if it is all paper income (non-cash), there may be cash flow problems in the near future--thus the importance of looking at the cash flow statement. Income is great, but if liabilities are too high, the income may not be adequate to service the debt in the long term--thus the importance of looking at the balance sheet. Statement of changes in equity, of course, to see if there is anything significant other than income, or perhaps dividends.
Asset
All expenses comes in income statements same as sales promotion expenses are also shown in income statement.
yea