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Income Statement
24 Minute Accounting

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Module 1 | 24 minute Accounting | |
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Unit 1 | 24 Minute Accounting Pretest | |
Unit 2 | 24 minute Accounting Course Overview | |
Unit 3 | Accounting Department Structure | |
Unit 4 | Which Accounting System to Use? | |
Unit 5 | Accounting Concepts | |
Unit 6 | Double Entry Principle | |
Unit 7 | Accounting Cycle | |
Unit 8 | Chart of Accounts | |
Unit 9 | Recognition of Revenue | |
Unit 10 | Accounting for Inventories | |
Unit 11 | Accounting for Fixed Assets | |
Unit 12 | Income Statement | |
Unit 13 | Balance Sheet | |
Unit 14 | Auditing for your Business | |
Unit 15 | 24 minute Accounting Posttest |
Survey Questions
Hi, in this video you will learn about the Income Statement. This statement can also be referred to as a P & L (Profit & Loss) or Earnings Statement.
The Income Statement is one of the most important Financial Statements that a company produces. It measures the financial performance over a given period of time. You can run the statement for a month, a quarter, year to date, or even for a whole year.
All businesses, companies and even NGO’s need to know how they performed; did they make a profit or a loss, or in the event of NGO’s, where did their funding go.
The Income Statement is set out in two main sections; Operational & Non Operational.
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Operational – this section is associated to the regular activities of the business. This section is split into three (3) main sections:
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Revenues – all sales income is recorded in this section
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Cost of Sales – all direct costs related to the sales, be it costs of the products sold or the services provided, are all mentioned here.
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Overhead or Operational expenses – all expenses that help you to run your operations like office rent, salaries, telephone expenses, etc, are included here.
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Non Operational – All revenues and expenses that are not within the regular business activities are included here. For example, if you are in the business of producing canned food, then the proceeds from selling equipment or a company car is recorded here.Now there are two main figures that you should focus on.
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Gross Profit (GP) margin
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Net Profit (NP) margin