Single-step Income Statement definitions Flashcards
Single-step Income Statement definitions
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Single-step Income Statement Financial report format listing all revenues, then all expenses, with net income calculated as the difference between the two. Revenue Total inflow from business activities such as sales and services, before any expenses are deducted. Sales Revenue Income generated from selling goods to customers, representing a primary source of revenue. Service Revenue Income earned from providing services rather than selling physical products. Expense Outflow or cost incurred in the process of generating revenue, including wages, interest, and other costs. Wage Expense Total compensation paid to employees for their labor during a specific period. Interest Expense Cost incurred from borrowing funds, typically paid to lenders as a percentage of outstanding debt. Cost of Goods Sold Direct costs attributable to the production or purchase of goods sold by a business. Income Tax Expense Amount owed to tax authorities based on taxable income for the period. General and Administrative Expenses Costs related to overall business operations, not directly tied to production or sales. Net Income Resulting figure after subtracting total expenses from total revenues, indicating profitability. Dividends Distributions of earnings to shareholders, not considered an expense on the income statement. Accounts Payable Obligations to pay suppliers for goods or services received, not classified as revenue or expense. Total Revenues Sum of all income sources before any expenses are deducted, used as the starting point in the statement. Total Expenses Aggregate of all costs incurred during the period, subtracted from total revenues to determine net income.