Statement of comprehensive income Flashcards
What is a statement of comprehensive income?
A statement of comprehensive income is a summary of the enterprise’s activities over a specific period of time, usually a year
A statement of comprehensive income is a summary of the enterprise’s activities over a specific period of time, usually a year.
Who is it used by?
It is used by several interested groups of people to understand how well the enterprise is performing
What is sales revenue?
Sales revenue is the revenue received by the business from selling its products
Sales revenue is the revenue received by the business from selling its products.
What is it also referred to as?
It is also referred to as simply:
1) Sales
Or
2) Turnover (net sales)
Sales revenue is the revenue received by the business from selling its products.
It is also referred to as simply sales or turnover (net sales), why?
It is also referred to as simply sales or turnover (net sales), because it takes into account any price discounts or goods returned by the customer
Interested groups:
Several groups of people will be interested in the comprehensive statement of account, as they will want to know what?
Several groups of people will be interested in the comprehensive statement of account, as they will want to know that the enterprise is being well run
Interested groups:
Several groups of people will be interested in the comprehensive statement of account, as they will want to know that the enterprise is being well run.
Who may these stakeholders include?
These stakeholders may include:
1) Managers
2) Employees
3) Suppliers
4) Customers
5) Shareholders (larger enterprises)
6) Tax authorities
The purpose of comprehensive statement of income:
The financial statement shows:
1) How much …
1) How much revenue the enterprise has received from sales of goods and services
The purpose of comprehensive statement of income:
The financial statement shows:
1) How much revenue the enterprise has received from sales of goods and services
2) How much the enterprise …
2) How much the enterprise has spent
The purpose of comprehensive statement of income:
The financial statement shows:
1) How much revenue the enterprise has received from sales of goods and services
2) How much the enterprise has spent
3) Where …
3) Where the money was spent
The purpose of comprehensive statement of income:
The financial statement shows:
1) How much revenue the enterprise has received from sales of goods and services
2) How much the enterprise has spent
3) Where the money was spent
The enterprise will use the statement of comprehensive income to understand what?
The enterprise will use the statement of comprehensive income to understand how well it is performing in terms of:
1) Costs
2) Gross profit
3) Net profit
Why stakeholders are interested in the statement of comprehensive income:
1) What will managers want to know?
Managers will want to know if the enterprise has achieved its target turnover and profit levels for the year
Why stakeholders are interested in the statement of comprehensive income:
1) Managers will want to know if the enterprise has achieved its target turnover and profit levels for the year
2) What will employees want to know?
Employees will want to know:
1) If their jobs are secure
2) If they are likely to receive a pay rise
Why stakeholders are interested in the statement of comprehensive income:
1) Managers will want to know if the enterprise has achieved its target turnover and profit levels for the year
2) Employees will want to know if their jobs are secure and if they are likely to receive a pay rise
3) Shareholders will …
Shareholders will expect a share of the profits
Why stakeholders are interested in the statement of comprehensive income:
1) Managers will want to know if the enterprise has achieved its target turnover and profit levels for the year
2) Employees will want to know if their jobs are secure and if they are likely to receive a pay rise
3) Shareholders will expect a share of the profits
4) Suppliers will …
Suppliers will be able to determine if the business is financially sound
