CH6专业英语讲义.pptx

Income Statement CH6 Objectives Accounting Elements Income statement Income statement connotation Accounting Elements Revenue : The price of goods sold and services rendered and increased in net assets resulting from an entity’s operating over an accounting period. Revenue Sales Revenue (Fees Earned , Commissions Earned ) Sales Returns and Allowance Sales Discounts (Trade discounts, Cash discounts) Net Sales Interest Revenue, Dividends Earned Expenses The costs of the goods and services used up in the process of earning revenue. Costs of doing business Expenses Cost of Goods Sold Operating Expenses Selling and Administrative Expenses Research and Development Expenses Interest Expense, Income tax Expense Income AKA Profit: Revenues exceed Expense Gross Profit Operating Income Net Income I/S AKA Profit or loss Statement, Statement of Earnings, Statement of Operations F/S that summarizes the profitability of a business entity for a specified period of time. The date should cover a period of time B/S a point of time I/S a period of time I/S Equation Revenues – Expenses = Net Income I/S Format Multiple-step : 1.Gross Profit 2. Operating Income 3. Net Income Single-step : Total revenues –Total Expenses Connotation Box 6-2 Glossary 利润表 收入 净销售收入 销售成本 销售退回和折让 毛利 销售和管理费用 营业收入 Exercise The monetary value charged to customers for the performance of services sold is called a(n)( ) Asset Net Income Capital Revenue D 2. Revenues are reported when ( ) A contract is signed Cash is received from the customer Work is begun on the job Work is completed on the job D 3. Expenses are recorded when ( ) Cash is paid for services rendered A bill is received in advance of services rendered Services are rendered None of above C 4. If beginning capital was $ 65000, ending capital is $ 43000, and owner’s withdrawals were $ 16000, the amount of net income or net loss was ( ) Net income of $ 37000 Net income of $ 8000 Net lo