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8 Cards in this Set
- Front
- Back
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What is a income statement? |
View of an account over a period of time? E.g One month |
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What are the other names for a income statement? |
Profit and Loss, P&L, Statement of income, statement of operations |
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What does the income statement show? (6) |
revenues, gains, expenses, losses, net income and other totals |
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What is revenue? |
Revenue is the income earned by a business over a period of time, eg one month. |
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What is an expense? |
An expense is the cost that occurs because of a company's operating activities |
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What is a gain? |
A gain is the amount received in excess of the assets book value |
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What is a loss? (3) |
1) Selling an asset for less that book value 2) The write-down of assets 3) The net results of expenses exceeding revenues |
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What is net income? |
NI = Revenues + Gains - Expenses + Losses |
