Saturday, May 23, 2015

Understanding The Income Statement

Understanding The Income Statement

 


 
 

4 comments:

  1. Revenue: Earnings of the business

    Expenses: Expired costs of business such as telephone bills, insurance, wages, and advertising.

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  2. THE INCOME STATEMENT
    REVENUES (money earned for the business)
    Less: (-) EXPENSES (expired costs)
    Total = NET INCOME or LOSS (difference between Assets & Liabilities - What you own of the company)

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    Replies
    1. THE INCOME STATEMENT
      FOR THE MONTH ENDED DECEMBER 31, (YEAR)
      REVENUES (money earned for the business)
      Less: (-) EXPENSES (expired costs)
      Total = NET INCOME or LOSS (difference between Assets & Liabilities - What you own of the company)

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  3. THE BALANCE SHEET
    COMPANY A
    DECEMBER 31, (YEAR)

    Assets = Liabilities + Owner's Equity (AKA Net Worth)

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