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11 Cards in this Set
- Front
- Back
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IRE
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Income = Revenue less Expenses
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Revenues
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Food, Bev, Rooms, Rental
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Expenses
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Labor, Cost of Goods Sold, Use of assets to produce products
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Gains and Losses
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Incidental transactions
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Income statements prepared for internal users
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summary income statement
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Income statements prepared for external users
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income statement w/ supplemental schedules
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1st section of an income statement
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Revenues of an operated department (direct revenues)
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2nd section of an income statement
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undistributed operating expenses
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3rd section of an income statement
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management fees, fixed charges, (ie. rent), gains or losses, income tax
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Difference between departmental income statements prepared for profit centers and for service centers
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Profit centers: Revenues, Cost of Sales, Labor Expenses, Other Expenses
Service Center Statements: Admin and Gen, Human Resources, Utilities, Marketing, Operation and Maintenance, Transportation |
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Interpret income statements using horz and vert analysis as well as base-year comparisons
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Horizontal:
absolute (actual #) and relative (%) differences Vertical: each line a percentage of sales common-size income staement base-year comparisons |
