FUNDAMENTALS OF

ACCOUNTANCY,
BUSINESS, AND
MANAGEMENT 2
Objectives:
I can identify the elements of SCI
I can understand the purpose of SCI in
business.
I can differentiate service business from
merchandising business.
STATEMENT OF
COMPREHENSIVE
INCOME
 SCI (Statement of Comprehensive Income)
• also known as the income statement.
•contains the results of the company’s operations for a Specific
period of time.

•The result is called “Net Income” if positive and “Net Loss”

if the result is negative.

•Can be prepared for:

Monthly
Quarterly
yearly
 2 Elements
•Revenue - is the income generated from normal
business operations and includes discounts and deductions
for returned merchandise.

•expense - a cost that has expired or has been

taken up by activities that help generate revenue.
 2 Types of Business

•Service Business
•Merchandising Business
 Service Business

is a company that provides certain

professional support to its clients. In these
businesses the product is not a tangible one,
instead it is an activity that helps a third party
at different areas.
Ex:
• Creative Solutions LLC is a digital media agency with a
few years in business. Its business model is to provide
content design and digital marketing campaign advice to
its clients through online meetings. The company
doesn’t exist physically in terms of office space, instead,
its employees all work from home and Creative Solutions
provides an online platform where clients can establish a
contact with a business’ representative within seconds
through live chat, video conference or e-mail.
 Merchandising Business

Is a company Engages in the purchase

and resale of tangible goods.
(type of business where they purchase different
types of products and resell them to
consumers.)
Ex.
Grocery store, Clothing store, etc.,
 Think, Pair, and Share

• As a future Businessman
which do you prefer?
Service business or
Merchandising Business?

• What is your dream

business? Why?
 TASK:

Create a graphic organizer and

differentiate Service business and
Merchandising business.
End of the slide