56 Flashcards I Made

Question 1

Revenue

Answer 1

Inflows of assets or settlements of liabilities during a period from delivering or producting goods, renedering services, or tother activies that constitue the entity’s ongoing major or central operations.

Question 2

Expenses

Answer 2

outflows of assets or incurrences of liabilities during a period from delivering or producing oods, rendering services. Or other activie that contstitue the entitys ongoing major or centroal operations

Question 3

gains

Answer 3

increases in net assets other than from revenues or investment by others

Question 4

losses

Answer 4

decreases in net assets other than from expenses or twithdrawals by owners

Question 5

income

Answer 5

the result of combining the four above concepts for a specififd period of time (earnings)

Income = Revenues - Expenses + Gains - Losses

Question 6

Single-step format income statement

Answer 6

Revenues Less Expenses = Net Income - No distinction between operating and non-operating categories

Question 7

Mutiple-step format income statement

Answer 7

There is a distinction between operating and non-operating categories. The operating section is the sales - COGS = Gross Profit; Operating Expenses: Selling, Admin, Total operating expenses = Income from operations; Other revenue: Interest exp, interest expense, = Income before taxes; income tax expense, Net income; EPS