★INCOME STATEMENT★

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ALL ABOUT ACCOUNTING : 36th BLOG

           ☆☆ACCOUNTING☆☆

★ Accounting exercise and practices : 
Lesson : 2

Hi friends 🙏

Today's discuss lesson of Income statement📑....

                                                   So let's discuss ....

                   ★ THE INCOME STATEMENT★

* Definition : 

The income statement summarizes all revenue earned and expenses incurred during a specified accounting period, and shows the net income (or net loss) earned over that period. Unlike the balance sheet, which reflects a static position at a "point-in-time", the income statement reflects all all transactions which have occurred during the "Financial year".

* Importance of income statement :

As Income statement is prepared so that an organization can determine it's net income. To determine net income, an organization must measure 📏 for a specified period of time (1) the revenue received (or accrued) for goods and services provided to it's clients and (2) the cost incurred for goods and services which it used. The technical accounting terms for these elements of net income are income and expenses Net income is the difference between income and expenses.  

* Define and example of income and expenses :

INCOME : refers to money received ( or to be received) by the organization for goods sold and services rendered during a given "financial year". Revenue for a micro finance organization 
includes : interest earned on loans to clients;  interest earned on funds on deposit with bank;  etc. 

Expenses : represent the costs incurred for goods and services used in the process of earning income. Direct expenses for a micro finance organization include financial costs, operating expenses and loan loss provisions. 





Remaining exercise and practices on income statement discuss in 37th blog... 

                                     So wait my 37th blog... 
 
                                                                             
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Comments

  1. UKOWNJuly 3, 2020 at 5:59 AM

    VERY INSPIRED ME

    ReplyDelete
  2. AnonymousJuly 3, 2020 at 11:10 PM

    To be honest, I don’t know how you manage to do such a good job every single time. Very well done!

    ReplyDelete

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