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.
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