The Income statement
Cost of goods
The price of the items that a business manufactures or purchases with the intention or resale.
Common Size Income Statement
Vertical analysis whose information has been reduced to a percentage to facilitate comparisons (expressed as a percentage of the value of sales)
The income statement
also known as statement of earnings, the profit & loss statement ( P&L statement), statement of operations
Expenses
the costs of operating a business e.g food and beverage, labour, utilities, advertising, depreciation, taxes
Losses
defined as decreases in assets, increases in liabilities or combi of both
Gains
defined as increases in assets, reduction in liabilities or combination of both
Revenue (turnover)
income a company receives from its normal business activities
P&L Statement
purpose : to provide the users the profitibility of companys operation in a particular period of time