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income statement
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∙ 12y ago
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Three key financial statements that corporations are required to prepare?
Statement of financial position ( Balance sheet) , Statement of Comprehensive Income ( Profit and Loss Account or Income and Expenditure account), Cash flow statement.
How is the income statement related to the balance sheet?
Income Statement is another type of a financial statement. It summarizes activities and events of one company which happened in a period of time. Usually, there are monthly, quarterly, and annual income statement. An income statement will show all revenues, all expenses, and net profits in detail.On the contrary, a balance sheet show a company financial positions such as assets and debt at that precise date. A balance sheet will show company's assets, liabilities and sharesholders equities.Assuming no asset or liability changes, one take the net profit figures from an income statement and add it to the shareholders equities portion.For financial statement analysis purposes, having either one is useless. It is essential to have both income statement and balance sheet together.--------------------Additional AnswerBalance sheet indicate what the firm owns and how these assets are financed in the form of liabilities or ownership interest. While income statement purports to show the profitability of the firm, the balance sheet declineates the firm's holdings and obligations. Together, these statements are intended to answer two questions: How much did the firm make or lose, and what is na measure ot its worth?An income statement (profit and loss statement) summarises the company's income and expenditure coming down the the profit or loss for the period. This is a statement over a certain period of time, for example a month or a year. A balance sheet summarises the assets and liabilities of the business and is a statement at one period in time
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
Where is the revenue expenditure listed on the financial statement?
revenue expenditures are recorded in "income statement" as revenue expenditures are those expenses, benefits of which has already taken by company in full.
What is income expenditure?
A statement that records the income and expenditure of an organization such as a charity,whose main purpose is not the generation of profit.
Distinquish between savings and financial surplus?
This is the difference between Income and Expenditure in a non-profit making business, where the income exceeds expenditure
Describe the diffferences between financial statement income and taxable income?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
When a cash surplus exists on your income and expenditure statement you can?
increase your investments
What is difference between P and L statement and income and expenditure statement?
Income and expenditure account is used by not for profit companies as they are formed for not for profit basis that's why they cannot use profit and loss account.
Which financial statement shows the net income earned by a company?
The income statement.
What is a principle of basic financial management?
The basic principle is this. Income exceeds expenditure = PROFIT Expenditure exceeds income = LOSS No profit or loss = BREAK-EVEN
What financial statement does transportation in go on?
INcome Statement
