Understanding Income Statement
Income Statement component and format
Net Revenue = Revenue - adjustments (e.g, cash discounts, volume discounts, or estimated returns)
By nature(Single Step) or By function(Multi Step)
- By nature: depreciation expense are displayed in one account regardless of whether they come from manufacturing or administration.
-
By function: Cost of good sold is composed of all manufacturing costs, such as raw materials, depreciation, labor, etc
Income statement format and components
Common - Size I/S 百分比法
使用百分比，是因?yàn)槿藢?duì)極大或極小數(shù)字不敏感。通過百分比發(fā)，可以看出哪些是重大科目，哪些科目發(fā)生了重大變化。在I/S中，一般使用revenue銷售收入作為分母
幾個(gè)同義概念
- Sales, revenue, top line
- net profit, net income, net earning, bottom line
- operating profit, income, EBIT
Revenue recognition
- 收入能夠可靠計(jì)量
- 收款確定
- 貨物交割、服務(wù)提供
- 成本可以可靠計(jì)量/雙方有協(xié)議
