Flashcards
Income Statement
Cards in this deck (8)
- 1What is an IS?- performance for a period of time
- determine profitability value for investment purposes/credit worthiness - 2What are costs and unexpired costs?- costs - amt actually paid for items like capital assets, services(payroll), and merch recvd
- unexpired costs - costs that will expire in future periods & be charged against revenues in a systematic and rational way - 3gross concept- Revenues - reported @ gross amts(less allowance for returns/discounts given)
- Expenses - costs only benefit the current period/allocation of unexpired costs to the current period for benefit received - 4components of an entitylowest level for which ops and cashflows can be clearly distinguished, both operationally and financial reporting purposes from the rest of the entity
- operating segment
- reportable segment
- reporting unit
- subsidiary
- asset group - 5Held for Sale (Discontinued Ops)Component of biz(GAAP) or disposal group(IFRS) is classified this way after meeting:
- mgmt commits to plan sale of component
- component is available for immediate sale as is
- active program to locate buyer
- sale of component is probable & expected within yr
- actions required to complete the sale make it unlikely that significant changes to the plan will be made/withdrawn - 6extraordinary ItemsUnusual and Infrequent events that are:
- material
- characteristically different from typical/customary biz activities
- not expected to recur in forseeable future
- not normally considered in evaluating ordinary results of an enterprise - 7general and Admin expenses- advertising
- insurance
- payroll taxes
- rent
- salaries
- supplies
- travel entertainment
- utilities
- other expenses - 8Selling Expenses-Sales commissions
- advertising (related to sales)
-promotional materials distributed
- rent of the sales showroom
- rent of the sales offices
- salaries and fringe benefits of sales personnel
- utilities and telephone usage in the sales department
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- Flashcards on Income Statement , created by Eylin Nunez on 20/06/2015.
- Created by
- Eylin Nunez
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