From the course: Accounting Foundations
Unlock the full course today
Join today to access over 23,200 courses taught by industry experts.
Overview of the income statement
From the course: Accounting Foundations
Overview of the income statement
- The income statement contains two items revenues and expenses. Revenues minus expenses equals net income. That's it. That's the income statement. But what does the word revenue mean? The meaning is kind of subtle but important. Revenue is the amount of assets created from the sale of goods or services. Let's say that you have a hundred dollars bill. That's an asset. Now, where could you have obtained that asset? Well, you could have borrowed it from somebody. Then we call the source of that asset a liability. Or you could have taken it from your personal savings in which case we call the source of that asset paid in capital. Or you could have gone out and done some work and earned the $100. If you generate the asset through profitable efforts then the source of that asset is revenue. People often have difficulty mixing these two together. Asset and revenue. There's the asset, the hundred dollars and there's the…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Contents
-
-
-
-
-
The balance sheet and the income statement2m 16s
-
(Locked)
Overview of the income statement3m 27s
-
(Locked)
Earnings per share1m 34s
-
(Locked)
Income statement example: Walmart's revenues2m 23s
-
(Locked)
Income statement example: Walmart's expenses3m 9s
-
(Locked)
Overview of the cash flow statement3m 9s
-
(Locked)
Cash flow example2m 44s
-
(Locked)
Summary of financial reporting2m 29s
-
-
-
-