TAILIEUCHUNG - Lecture Accounting: What the numbers mean (2/e) - Chapter 8: The income statement and the cash flow statement

After reading this chapter, you should be able to answer the following questions: What is revenue, and what are the two criteria that permit revenue recognition? How is cost of goods sold determined under both perpetual and periodic inventory accounting systems? What is the significance of gross profit, and how is gross profit calculated and used?. | CHAPTER 8 The Income Statement and the Cash Flow Statement 8- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Define Income and explain the criteria that permit revenue and income to be recognised. Determine cost of goods sold. Explain the significance of gross profit and calculate the gross profit margin. Explain the principal categories of expenses. Explain what profit before income tax includes. Understand the Earnings Per Share (EPS) calculation. Consider alternative Income statement presentation models. Identify unusual items on the income statement. Explain the purpose and general format of the Cash Flow Statement. 8- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Overview The Income Statement indicates how much profit the firm made for a period. It also shows whether sales are increasing relative to the cost of goods sold. Distinguish between gross profit and net profit. In the second part of this topic we will explore the cash flow statement. The cash flow statement explains the change in the entity’s cash position for the period. The cash flow statement summarises the cash affects of the firm’s operating, investing and financing activities during the period. 8- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Income The AASB defines income as “increases in economic benefits during the accounting period in the form of inflows or decreases in liabilities that result in increases in equity, other than those relating to contributions from owners”. Inflows or increase in assets; or Decrease in liabilities; Other than from owners; That increase equity. 8- Copyright 2007 McGraw-Hill Australia Pty

• Kế toán - Kiểm toán
• Lecture Accounting
• Accounting information
• Accounting standards
• Income statement
• Cash flow statement
• Cash flows
• Financial accounting
• Lecture Financial accounting
• Management accounting
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
• Error corrections
• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions