Financial Statements Archives - Page 23 of 24

Interest income: Definition, Explanation, Journal Entries and Example

What is interest income? Interest comes that record in the income statement referred to non-operating income or other income that entities earned during the periods of time from their investment. Investment here included short-term deposit, long-term or fixed deposit, saving account, due credit charged to customers, and similar kinds. For example, the company might have […]

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Understanding Gross Profit in the Income Statement

Financial Statements

Overview: Gross profit is the profit after eliminating products or services cost of goods sold from the total net sales. These profits are recorded in the entity’s income statement and are not recorded in the balance sheet. Gross profit is not the net earning for the company, but the gross earning that entity receives after

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What Are Operating Expenses on the Income Statement?

Financial Statements

Definition: Operating expenses are the operating costs that occurred by an entity as the result of its daily operating activities and are recording the income statement based on the accrual principle during the period that those expenses occurred. These costs are different from the cost of goods sold since they are not directly associated with

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What Are Net Sales On Income Statement? (Formulare and Calculation)

Financial Statements

Overview: In the income statement, net sales or total sales revenues are the same things. Net sales during the period are the gross sales after deducting sales return and sales discount that entity made to customers during the period. The total net sales value during the period usually is present in the income statement, and

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Understanding Net Profit or Income on Income Statement (Formula, Example, and Explanation)

Financial Statements

The main purpose of any business entity is profit generation. Any business undertakes varying operations to earn revenues and work profitably. The operating activities of a business form the accounting cycle around the financial year. The activities are recorded in books of accounts and used to prepare the financial statements of the company. Different financial

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7 types of Income Statement Ratios – Explained with Example

Financial Statements

Overview: An income statement is a statement that records all kinds of revenues and expenses that occurred in the entity for a specific period of time. This statement is sometimes called a statement of financial performance since it shows how good or bad an entity’s performance is compared to other periods or entities. There are

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Statement of Comprehensive Income: Definition | Types | Explanation

Financial Statements

Definition: Comprehensive Income or Statement of Comprehensive Income is a financial performance statement that listed down all profit and loss and other comprehensive income of entity for the period of time. It usually prepares and presents monthly, quarterly, and annually on a comparative basis. That means if the company prepares the quarterly statement, its comparative

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Other Comprehensive Income: Overview | Example | Explanation

Financial Statements

Definition: Other comprehensive income as defined by IFRS comprises items of income and expense (including items that may not and will not reclassify into income statement) that are not allowed to recognize in profit or loss. Currently, Statement of Profit or Loss and Other Comprehensive Income is allowed by IFRS to be presented in two

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Tips to read and analyst income statement like experts

Financial Statements

Overview: The income statement shows the information related to revenues, expenses, and profits of an entity for a specific period. That is what the information you can obtain from the income statement. You can use this information to analyst and assess the performance of the entity again similar size in the industry or other purposes.

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Are Inventories Current Assets? (With Detail Explanation)

Current Assets, Inventories

Definition: Inventories are classed as current assets in the entity’s balance sheet. They normally include a group of liquid assets including raw materials, work in progress, and finished goods which are expected to be converted into cash or cash equivalent within 12 months. The three main common examples of the entity’s financial statements are income

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