Asset  Management

Income Statement
➢ Shows the following:
➢ Profit the company has generated
➢ How that profit was made
➢ Income= revenue earned (i.e. sales)
➢ Income=Turnover=Sales=Revenue
➢ Expenses= costs incurred in running the business
➢ The result is a profit or loss
Income Statement
Income Expenses Profit (or Loss)
Provides benefit for
1 time period
Goods purchased
for resale
Light & Heating
Water & Rates
Rent paid
Sale of goods
& services
Sale of tickets
Interest received
Rents received
Income Statement
• Covers a specific period which is generally one year
• Concerned with measuring an organisation’s performance
• Profits are central in evaluating the organisation’s performance
Income Statement
• Gross Profit for the period
• Profit from buying and selling goods
• Does not take into account any other
expenses or revenues associated with
the business
Sales -Cost of Sales=
Gross Profit
Income Statement
Gross Profit
Less: Expenses
Operating Profit




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