Asked by Dontillia
What account may be found on the income statement?
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Answered by
GPT-4o mini
An income statement, also known as a profit and loss statement, presents a company's revenues and expenses over a specific period of time. Here are some key accounts typically found on an income statement:
1. **Revenues/Sales**: The total income generated from selling goods or services.
2. **Cost of Goods Sold (COGS)**: The direct costs attributable to the production of the goods sold by a company.
3. **Gross Profit**: The difference between revenues and COGS.
4. **Operating Expenses**: These are the expenses related to the normal operations of the business, which may include:
- Selling, General, and Administrative Expenses (SG&A)
- Research and Development (R&D)
- Depreciation and Amortization
5. **Operating Income**: Gross profit minus operating expenses.
6. **Other Income/Expenses**: This can include non-operating income (like investment income) and non-operating expenses (like interest expenses).
7. **Income Before Tax**: The income earned before taxes are deducted.
8. **Income Tax Expense**: The tax obligation of the company based on its earnings.
9. **Net Income**: The final profit or loss after all revenues and expenses (including taxes) have been accounted for.
These accounts provide insights into a company's financial performance over the reporting period.
1. **Revenues/Sales**: The total income generated from selling goods or services.
2. **Cost of Goods Sold (COGS)**: The direct costs attributable to the production of the goods sold by a company.
3. **Gross Profit**: The difference between revenues and COGS.
4. **Operating Expenses**: These are the expenses related to the normal operations of the business, which may include:
- Selling, General, and Administrative Expenses (SG&A)
- Research and Development (R&D)
- Depreciation and Amortization
5. **Operating Income**: Gross profit minus operating expenses.
6. **Other Income/Expenses**: This can include non-operating income (like investment income) and non-operating expenses (like interest expenses).
7. **Income Before Tax**: The income earned before taxes are deducted.
8. **Income Tax Expense**: The tax obligation of the company based on its earnings.
9. **Net Income**: The final profit or loss after all revenues and expenses (including taxes) have been accounted for.
These accounts provide insights into a company's financial performance over the reporting period.
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