Revenue And Cost Sheet Case Study

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Register to read the introduction… It displays two columns with two years of data which the most current year of data is to the left side. The key responsibility of the sheet is to show if expense exceed revenue or if revenue is in excess. The accounting formula used id operating revenue minus operating expense will equal operating income, plus or minus. The revenue and expense sheet is a sheet that displays notations of transactions of what has come in or inflows and what has gone out or outflows. The first thing on the sheet is the revenue for operation and second is the operating expense. Once the operating expense has been deducted from the operating revenue, you will be left with the income from operation which could be seen in excess which is great or in the negative which is bad for the managers. If in the negative then managers must make some type of adjustments in the operation of the organization. Others areas on this sheet that are reported are interest income under non-operating gains or losses. It should be mentioned that if there is positive result in cash then it is reported as a increase in the fund balance and it is carried forward and annotated on the statement of changes in fund balance and net …show more content…
Did land, plant and equipment increase or decrease significantly over the prior year? Yes there was a significant decrease in the area of land, plant and equipment. The Land value stayed the same, no buildings were purchased and the equipment decreased by $40,000 this is probably due to depreciation. 7. Did long term debt increase or decrease significantly over the prior year? There was no significant increase in long term debt, but it did show an increase of $4000.

Exhibit 10-5 1. What is the period reported on the statement of revenue and expense? The period stated on the report is shown as, December 31, 20x2- December 31, 20x1. 2. Is it one year or a shorter period? If it is a shorter period, why is this? The statement of revenue covers a period of time, not from a specific date to date or point in time. 3. Are there large discrepancies in balances between the prior year operations and the current year operation? Yes there are discrepancies, in total operating revenue there is a $150,000 difference. Also there is an $85,000 difference in total operating expense. 4. Did total operating revenue increase over the prior year? Yes, there was a $150,000 increase in operating

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