Income Statement Explained
Jennifer edwards Income statement is one of the most important of financial statements and it’s also known as profit and loss statement. It is also known as statement of operations and statement…
Depreciation in context with Income Statement and Balance sheet
Depreciation is one of the basic accounting terms that is applied to the degree of wear and tear that happens to a firm’s assets. With the help of depreciation accountants…
How to report Profit, Losses and Cash flows
There are different kinds of financial statements for reporting cash flows in a business such as income statement and statement of cash flows. These cash flows statements are different from…
Cash Flow Statement Example – Direct and Indirect Method
Rubab Ali Cash Flow Statement Example - Direct and Indirect Method: Unlike the major financial statements, cash flow statement is not prepared from the adjusted trial balance. The information to prepare this…
Predetermined Overhead Rate and Capacity
Predetermined Overhead Rate and Capacity: Companies typically base their predetermined overhead rates on the estimated, or budgeted, amount of allocation base for the upcoming period. This is the method that…
Vertical Analysis and Common Size Statements
Sana Ahmed Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size…
Variable Costing System
Variable Costing System A Decision Making Tool for Management: After studying this chapter you should be able to: Explain how variable costing differs from absorption costing and compute unit product…
Recording Non-manufacturing Costs in a Job Order Costing System
Abida Rehman Recording Non-manufacturing Costs in a Job Order Costing System: In addition to manufacturing costs, companies also incur marketing and selling costs. These costs should be treated as period expenses and…
Recognition of Net Revenue Method–By Product Costing
Recognition of Net Revenue Method--By Product Costing: This method recognizes the need for assigning some cost to the by-product. It does not attempt, however, to allocate any main product cost…
Profit and Loss Account in Statement Form/Income Statement
Profit and Loss Account in Statement Form/Income Statement: Trading and profit and loss account/income statement may be prepared either in account form (T form) or in report form (statement form).…
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis: Learning Objectives: Define and explain contribution margin. Prepare a contribution margin format income statement. What are the advantages of calculating…
Income Statement Definition
Shamsa Rafique Income Statement Definition: Income statement is the summary of a management's performance as reflected in the profitability (or lack of it) of a firm over a certain period. It itemizes…
Financial Statement Analysis
Sidra Farid Financial Statement Analysis Learning Objectives: Prepare and interpret financial statements in comparative and common-size form. Compute and interpret financial ratios that would be most useful to a common stock holder.…