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Income statement of services company is same with little difference that there is no purchases inventory as in services company services are provided rather any goods or product.
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What was the income statement previously called?
The Income Statement is also called the P&L (Profit and Loss) Statement.
Does interest revenue go on income statement?
Yes all revenues are part of income statement and interest revenue also that’s why it is shown in income statement as other income.
Which of the following is the bottom line on the income statement?
the net income
Where does interest expense in the income statement?
Interest expense is shown at debit side of income statement because it is an expense for business.
What is accounting normalization?
Removing items from the income statement or balance sheet that do not normally occur during the course of business to better estimate the value of a company.
Where does unearned service revenue go on a multiple step income statement?
unearned service revenue is on the balance sheet not the income statement so the answer is nowhere. service revenue is on the income statement under revenues.
Which financial statement shows the net income earned by a company?
The income statement.
What statement summarizes the results of the company's operations?
The income statement summarizes the results of the company's operations.
What type of revenue is reported in the other income section of the multiple step income statement?
unearned service revenue is on the balance sheet not the income statement so the answer is nowhere. service revenue is on the income statement under revenues. unearned service revenue is on the balance sheet not the income statement so the answer is nowhere. service revenue is on the income statement under revenues Looking after a customer, particularly a customer who places allot of business with you so that you keep and grow that business and the relationship you have with the customer (to stop them going
Is the measure of net income for a merchandising company conceptually the same for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Is the measurement of net income for a merchandising company conceptually the same as for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
What is the difference between a merchandising company and service company?
There are different ways in how two income statements are prepared. For example: the income statement (also known as P&L) of a merchandising company consists of Revenue, Expenses (related to the sales volume through the Cost of Goods Sold (COGS) and General & Administrative Expense (G&SA), which all result in Net Income. The income statement of a Service company consists of Service Revenue minus any Expenses related to that service, which results in Net Income.Another way to look at it is that inventory never leaves the balance sheet until it is physically sold to a customer, which transfers it to Cost of Goods Sold.
What is budgeted income statement?
Budgeted income statement is the projected or planned income statement based on standard amounts to foresee the future business or company position before it
What is the difference between a cash budget and an income statement?
Income Statement is a financial statement which shows all the income and expenses of company, while cash statement shows the receipts and payments of company. In cash based accounting system cash statement is also work as a income statement as everything is dealt on cash bases but in accrual accounting tracking of receipts and payments and income and expense is a separate tasks.
What is your service phylosophy?
Mission statement of your service company.
What is a consolidated income statement?
Consolidated income statement shows the overall performance of one year by parent company as well as child company in group of companies accounting.
What should accompany the income statement of a company using earnings management?
An income statement, enhanced by earnings management without adequate disclosure, may well be a fraudulent income statement.
