Income Statement Flashcards
Purpose
Profitability; credit worthiness, information for investors
Other gains or losses
net concepts; not in ordinary course of business
Presentation order
IDA
Income from continuing operations
Operating; non operating; income taxes
Shown twice net of taxes
Income from Disc Continued Operations
Shown net of taxes
Accumulated change in accounting principle
Net of taxes; From one acceptable acc princp to another; if not then error; if you think that the new method represents information more fairly for users;
Unusual and or infrequent items
Shown in cont operations after non operating stuff; not net of tax; extraordinary items not shown; f/s or FN disclosure
Income from cont operations
recurring activities; non recurring or non op gains or losses; shown twice
Interested in operating section
because good if cf goes up and income from operations goes up
Multiple step income statement
Book
Single step income statement
Book
Inventory
Purchase price; freight in; shipping
Selling exp
sales and commission; advertising; marketing; freight out
Gen and Admin
other salaries; accounting and legal; insurance expense
Other gains or losses
interest; non operatins gains or losses; not related to core business
