Income Statements. Say you’re looking to buy a business Why would you want to see the balance sheet? –Assets –Liabilities –Equity What doesn’t the balance.

Slides:

Advertisements

Similar presentations

The Expanded Ledger: Revenue, Expense, and Drawings

Advertisements

Chapter 7 7-1, 7-2, & 7-3.

EBT Method of reporting and recording financial activity of a business.

Revenue, Expenses & Drawings

Uses of Accounting Information and the Financial Statements

4.01 Understand financial planning..  Assets: what the company owns  Liabilities: what the company owes  Owner’s Equity: value of owner’s investment.

4.01 Accounting and Finance. What is Accounting? Method of reporting financial activity of a business Financial transactions recorded in an orderly fashion.

Introduction to accounting Debbie Gahr. Accounting  It is an information system that reports on the economic activities and financial condition of a.

Accounts Interpreting Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist.

The Income Statement. Up to now Learned a variety of accounts – Assets – Liabilities – Owner’s Equity – Revenue – Expenses Learned our first financial.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning REPORTING FINANCIAL INFORMATION The financial information needed by business managers and.

ACCOUNTING. The system used by an organization to keep a record of all the money that comes in and goes out of a business. –This includes payments received.

Managing Business Finance

Accounting and Financial Reporting Entrepreneurship & Small Business Management.

LESSON 6-1 WORK SHEET FOR A SERVICE BUSINESS

Preparing an Income Statement LESSON 7-1.  An income statement reports financial information over a specific period of time, indicating the financial.

Chapter 5 – The Expanded Owner’s Equity

Introduction to Accounting Written by Ruby Ann Sawyer, Brantley County Middle School.

WRITTEN BY RUBY ANN SAWYER, BRANTLEY COUNTY MIDDLE SCHOOL Introduction to Accounting.

Starting Your Own Business part 2 Financial Reports Dr. John Abraham ProfessorUTPA.

 Balance Sheet  Income Statement  Owner’s Equity Statement.

Accounting: Financial Statements!! BBI 2O1. The Balance Sheet Shows a business’s financial position on a particular date The Balance Sheet Equation –

What financial statement uses net income (or net loss) taken directly from the income statement?

Introduction to Accounting

Chart of Accounts.

Balance Sheet Audited Active 114, ,666 Current Assets 103, ,673 Fix Assets 218, ,339 Total Passive 93,705 77,844.

Week 5.  Also known as an accounting period.  It’s the period of time that business reports financial information.  Business determines the length.

Interpreting Financial Statements What the Income Statement Says… business name and accounting period sources of revenue realized during the period expenses.

Chapter 3 The Income Statement. Terminology Revenue is the money or promise of money received from sale of goods or services Expenses are the costs incurred.

1 Income Statement. 1.Buying a horse (for me!) 2.How much did I pay? 3.What do I have invested in it? 4.What to sell it for? Simple Transaction.

THE INCOME STATEMENT Chapter 5.2. Terminology Review Revenue is the money or promise of money received from sale of goods or services Expenses are the.

Introduction to Accounting 8 th grade Mrs. Stovall.

The Income Statement Another Income Statement Income Statement with Net loss.

The Income Statement. The Purpose An income statement reports a business’s income and expenses for a fiscal period An income statement reports a business’s.

Preparing Financial Documents The Income Statement & Balance Sheet.

Financial Analysis. Financial Terms List: Finding Funding You need to consistently find funding: What are some ways of funding? Budget funds from profits.

RevenueExpensesProfit  Profit  Profit is the increase in the owner’s equity that results from the successful operation of a business  Revenue  Revenue.

The Balance Sheet. What is a Balance Sheet? A financial statement that shows the company’s assets, liabilities, and net worth (also known as equity) on.

Preparing Financial Statements. 2LESSON 7-1 INCOME STATEMENT INFORMATION ON A WORK SHEET page 182.

FINANCIAL STATEMENTS By: George Goto. FINANCIAL PERFORMANCE RATIO  Financial Performance Ratio: Comparisons of a company’s financial elements that indicate.

ADJUSTED TRIAL BALANCE

Financial Statements for a Sole Proprietorship CH. 9 Section 1 THE INCOME STATEMENT CH. 9 Section 1 THE INCOME STATEMENT.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3 Prepare a distribution of net income.

Income Statement (“P&L”) Cash Flow Statement Balance Sheet An Introduction to Financial Statements.

Introduction to Accounting. What is accounting? The system of recording and summarizing ______________ ___________and analyzing, verifying, and reporting.

FINANCIAL STATEMENTS FOR A SOLE PROPRIETORSHIP Chapter 9.

Financial Statements A set of Financial Statements consist of four related accounting reports that summarizes the financial resources, obligations, profitability.

BAF3M1 The Expanded Ledger: Revenue, Expenses, and Drawings

By : Breana Moore Principles Of Business and Finance, Period 02.

Chapter # 5 Financial Plan. Financial Plan for start up business A financial plan is a series of steps or goals used by an individual or business, the.

Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist of three key accounting.

> > > > Understanding Financial Statements. Balance Sheet What is a Balance Sheet? A statement that shows –(1) How much money a company has –(2) How much.

 First major statement is the Balance Sheet  The second major statement is the Income Statement  It would be impractical to include all revenue and.

Chapter 8 – Financial Statements for a Proprietorship

Income Statements Mr. Singh.

POB 4.01 Part 3 – Income Statements & Balance Sheets

The Income Statement.

Chapter 6 Work Sheet for a Service Business

Accounting Thursday September 29th, 2016.

(Financial Statements) Accounting Principles, Eighth Edition

Unit 2 review basketball.

Chapter 5 – The Expanded Owner’s Equity

© 2014 Cengage Learning. All Rights Reserved.

إعداد القوائم المالية Preparation of Financial Statements

Recall: Balance sheet shows the financial position of a business for a specific point in time. Balance sheet shows assets, liabilities, and owner’s equity.

LESSON 7-1 Preparing an Income Statement

Point 6 Financial Statements

(Financial Statements) Accounting Principles, Eighth Edition

Extending Financial Statement Information on a Work Sheet

The Income Statement.

Presentation transcript:

Income Statements

Say you’re looking to buy a business Why would you want to see the balance sheet? –Assets –Liabilities –Equity What doesn’t the balance sheet tell you? –Income –Profit/Loss

Income Statement Income Statement - a financial statement that summarizes revenues and expense, and shows the net income or net loss for a given period of time

Heading Revenue Types of Revenue Expense Types of Expense Total Expense Revenue - Expense

Why Use an Income Statement? Owners want to know if they’re making a profit Investors or Bankers want to know whether to invest or loan money To pay taxes a business must know profit/loss

Fiscal Period Earnings (profit/loss) are measure over a specific period of time Sometimes referred to as the accounting period The fiscal year is not always the calendar year (most aren’t) but it is twelve(12) consecutive months

Shorter Fiscal Periods Quarters – the year is broken into four(4) equal parts –If you watch/read/listen to business news you will often hear business reporting on their quarterly earnings (investors like to know these things so they know if their money is working for them) Weeks – close reporting

Work Handout: