Understanding Income Statements

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This reading introduces the readers to income statements, one of the three major financial statements. We will learn about the structure and presentation of income statement, calculation of various elements of income statements, and common ratios associated with it.

Course Syllabus

Income Statement

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Understanding Income Statements

Course Syllabus

Income Statement

Formats of Income Statements

Principles of Revenue Recognition

Revenue Recognition - Long-term Contracts

Revenue Recognition - Instalment Sales

Revenue Recognition - Barter Transactions

Expense Recognition

Inventory Expense Recognition

Depreciation Expense Recognition

Amortization Expense Recognition

Bad Debt Expense and Warranty Expense Recognition

Financial Reporting of Non-recurring Items

Operating and Non-operating Components of Income Statement

How to Calculate Basic Earnings Per Share (EPS)

Impact of Stock Dividends and Stock Splits on Earnings Per Share (EPS)

Diluted EPS

Calculation of Diluted EPS (Convertible Preferred Stock)

Calculation of Diluted EPS (Convertible Debt)

Common Size Income Statement

Performance Measures of a Company

Comprehensive Income

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Course Resources

Understanding Income Statements

Course Quizzes

Understanding Income Statements

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