statement of comprehensive income Flashcards
1
Q
what is the statement of comprehensive income?
A
a financial document showing the business revenue/income over the year and their costs and expenditure
2
Q
stakeholder interest:
A
- DIRECTORS = legal requirements
- BANKS = is the business viable to lend to
- EMPLOYEES & MANAGERS
- COMPETITORS = comparison
- POTENTIAL INVESTORS = want to know the profitability of the business, worth investing in
- SHAREHOLDERS = want to know the final profit figure which dividends will be paid out on
3
Q
key information
A
- SALES = revenue, sales turnover
- INTEREST/TAXATION = corporation costs
- OPERATING EXPENSES = expenses are costs not involved in producing the goods e.g advertising, promotion, wages
- COST OF SALES = e.g. raw materials, wages, labour
