Course Hero Logo

Case 3 Keeter.docx - 1 Module 3 Case 3: The Income...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 3 out of 6 pages.

1Module 3 Case 3:The Income StatementGregoron M. KeeterTrident UniversityACC201 Financial AccountingSeptember 25, 2021
2The income statement is a document that shows the companies basic financial standing.There are multiple components to the income statement. Mainly they consist of profits, operatingexpenses, and operating incomes. There are more values to the statement however these are themost important in regard to financial information. The profits are determined by subtracting thecost of sales from the revenues. The operating expenses cover the amount that is needed toproduce the product or deliver the service. The operating income covers the amount of profitfrom the goods or services. Investors or potential lenders would be interested in this informationas this could affect their decision for putting value into the company. The information providedwould tell the users what matters the company is focused on. Examples of these matters are whatpart of the company is receiving the most funding, what the company is spending on materials,how the company’s employees are paid or if their pay is a primary goal for the company, whattaxes were paid by the company, and many other things that can be calculated using differentratios. This information can also be found on the balance sheet. Both of these statements can beused separately to provide insight on the company’s financial situation. However, with bothdocuments together, the user would be able to see exactly what values went to what areas of the

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 6 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
GaryWashington
Tags
Balance Sheet, Income Statement, Revenue, Generally Accepted Accounting Principles

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture