Notes Ch 3

Notes Ch 3 - Jorge Rossello Busi 100 Ch 3 Notes I. Types of...

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Jorge Rossello Busi 100 Ch 3 Notes I. Types of Financial Statements and Accompanying Notes a. Income Statement: a listing of all revenues earned and expenses incurred during a specific period of time; also called statement of operations or statement of earnings. i. Components of an Income Statement 1. Listing of all revenues earned and expenses incurred by reporting organization during the specified period. a. Revenue includes all increases in net assets created by the sale of goods and services resulting from the primary operations of the organization. b. Expenses include decreases in net assets in hopes of generating new revenue. (Salaries paid, cost of facilities rented, utilities paid. 2. Reports of gains/losses for the same period of time. a. Gain: Increase in the net assets of an organization created by an occurrence outside of its primary or central operations. i. Example : Company sells land next to a warehouse for more than the original cost. b. Loss : Decrease in the net assets of an organization from a similar event. i. Example : Company sells an oven for less than the cost.
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3. Cost of Goods Sold : Total amount that a company paid for inventory items that were sold. Counted when good is sold, not bought by company. 4.
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This note was uploaded on 04/26/2011 for the course BUSI 100 taught by Professor Unknown during the Spring '07 term at UNC.

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Notes Ch 3 - Jorge Rossello Busi 100 Ch 3 Notes I. Types of...

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