Research Paper on Financial Statements
HISTORY
This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.
OBJECTIVES
To be able to give Accounting Technology students quick reference when it comes to Income Statements.
WHAT IS INCOME STATEMENT?
This income statement tells how much money a company has brought in (its revenues) how much it has spent (its expenses) and the difference between the two (its profit). The income statement show’s a company’s revenues and expenses over a specific time frame. This statement contains the information you’ll must often see mentioned in the press or in financial reports.
An income statement reports the profitability of the business operations for a stated period of time. It tells the uses how much revenues were earned by the business and how much expenses were incurred. The difference between the revenues and the expenses is called the net income or net loss. There is net income if the revenues exceed the expenses and a net loss if expenses exceed the revenues.
DIFFERENT KINDS OF INCOME STATEMENT
SAMPLES / ILLUSTRATION
BALANCE SHEET
The Balance sheet of the statement of financial position is a statement which illustrates the current financial standing of an entity. It gives you an idea of the development of the business throughout the period covered. It is prepared at the end of every reporting period and reported to shareholder of the business entity.
ILLUSTRATION I
After one month of operation, the financial reports of Violy’s Beauty Parlor are as follow.
VIOLY’S BEAUTY PARLOR
BALANCE SHEET
August 31,19_
ASSET LIABILITIES
Cash P 2,570.00 Accounts Payable P 800.00
Prepaid rent 3,000.00 Notes Payable 6,000.00
This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.
OBJECTIVES
To be able to give Accounting Technology students quick reference when it comes to Income Statements.
WHAT IS INCOME STATEMENT?
This income statement tells how much money a company has brought in (its revenues) how much it has spent (its expenses) and the difference between the two (its profit). The income statement show’s a company’s revenues and expenses over a specific time frame. This statement contains the information you’ll must often see mentioned in the press or in financial reports.
An income statement reports the profitability of the business operations for a stated period of time. It tells the uses how much revenues were earned by the business and how much expenses were incurred. The difference between the revenues and the expenses is called the net income or net loss. There is net income if the revenues exceed the expenses and a net loss if expenses exceed the revenues.
DIFFERENT KINDS OF INCOME STATEMENT
SAMPLES / ILLUSTRATION
BALANCE SHEET
The Balance sheet of the statement of financial position is a statement which illustrates the current financial standing of an entity. It gives you an idea of the development of the business throughout the period covered. It is prepared at the end of every reporting period and reported to shareholder of the business entity.
ILLUSTRATION I
After one month of operation, the financial reports of Violy’s Beauty Parlor are as follow.
VIOLY’S BEAUTY PARLOR
BALANCE SHEET
August 31,19_
ASSET LIABILITIES
Cash P 2,570.00 Accounts Payable P 800.00
Prepaid rent 3,000.00 Notes Payable 6,000.00