CP 2 modul (Income(P&L) statement)

Question 1

Income statement

Answer 1

Present the efficiency of the company’s operations in a given reporting. (And provides information on the main factors affecting its size. The profit and loss account, which operates in stream volumes, groups all revenues and the corresponding costs and losses)

Question 2

Income statement illustrates the efficiency in three areas of activity:

Answer 2

1. operating(core and other)
2. Financial activities
3. Activities of fortuitous (unexpected) nature

Question 3

Analysis “nature of expense” method

Answer 3

When a company records its expenses, it groups them into different categories based on their nature. This means that expenses are classified based on the type of activity or function they represent.

Question 4

Analysis “function of expense” or “cost of sales method”

Answer 4

Classifies expenses according to their functions as a part of cost of sales

Question 5

Selling, General and Administration Expenses

Answer 5

costs related to the sale of finished
products and goods. These include, among others: costs of packaging, transport and
storage of finished products, advertising costs, costs of obtaining and fulfilling orders, as
well as depreciation costs of fixed assets used by the sales department (e.g. tankers, cars

Question 6

Other operating expenses,

Answer 6

which are operating expenses that are indirectly related to the core
business of the enterprise (losses on the sale of fixed assets, write-offs of expired receivables,
compensation paid, penalties and fines),

Question 7

Financial expenses,

Answer 7

mainly the costs of using nonequity capital (commissions on loans
obtained, discounts paid on the sale of bills, interest on late liabilities, losses on financial
operations)

Question 8

Extraordinary losses

Answer 8

(damage to
property caused by random events, costs related to removing the effects of random events).