Income

statement
Presented by VERALOU M. URBINO
 Describe me!
WEALTH FUNDS

CURRENCY EARNINGS

INVESTMENT CAPITAL

GAIN INCOME
“ACCOUNT
ING IS THE
LANGUAGE
OF
BUSINESS”
- WARREN BUFFET
 Learning objectives
At the end of this presentation, you should be able to identify the following:

• The definition of money in terms of in accounting point of view.

• The concept of an income statement

• Identify the following terms:

•Revenue
•Sales
•Cost of Good Sold
• Expense
•Net Income
•Retained Earnings
Income
statement
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profits & loss
profits
● is net income earned after
subtracting all dollar costs from
total revenue
●  financial benefit realized when
revenue generated from a
business activity exceeds the
expenses, costs, and taxes
involved in sustaining the
activity in question
losses
● an excess of expenses over
revenues, either for a single
business transaction or in
reference to the sum of all
transactions for an accounting
period.
●  are a one-time removal or
decrease in a resource or asset,
and can occur due to costs that
produce no benefit, a decrease in
value of 
Important TERMS IN AN INCOME
STATEMENT
sales
revenue by a company for
selling its products or rendering
its services
Cost of goods sold
the carrying value of goods
sold during a particular period.  incurred by a company in
Gross profit
the profit a company makes
after deducting the costs
associated with making and
selling its products
EXpenses
the money spent and the costs
pursuing revenue
Important TERMS IN AN INCOME
STATEMENT
Net income
includes all of the costs and
expenses that a company incurred,
which are subtracted from revenue
Retained earnings
 is the accumulated net income of
the corporation that is retained by
the corporation at a particular point
of time, such as at the end of the
reporting period.
 ANY
Questions?
Thank you
for
listening!