Join Rudolph Rosenberg for an in-depth discussion in this video Expenditures, part of Financial Literacy: Reading Financial Reports.
- [Voiceover] In the income statement,…all the expenditures of the company are divided…into two categories, costs and expenses.…A company needs to spend money…in order to operate on day-to-day basis.…Those expenditures enable a wide variety of activities,…ranging from the fulfillment of customer orders,…to paying salaries, furniture, rent,…utilities, and many more.…In the income statement,…the expenditures are divided into two categories,…to give the reader the ability to differentiate…between the costs of products,…from the rest of the expenditures.…
Let me explain why with an example.…Let's imagine that the ice cream shop…has been making good money for some time now,…and that the owner wants to stop renting its shop,…and buy it.…The ice cream shop owner will speak to his banker,…and because it is a well managed company,…making good profits, it will get a loan to buy that shop.…Once the shop is purchased, the ice cream shop…will start repaying the loan on a monthly basis.…Each month, it will therefore be making less money,…
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- What is a financial statement?
- Reading the balance sheet
- Understanding depreciation, liabilities, and equity
- Reading the income statement
- Understanding revenue, costs, profitability, and net income
- How cash flow works
- Analyzing financial documents with context<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
Skill Level Appropriate for all
1. Financial Statements
2. The Balance Sheet
3. The Income Statement
4. The Cash Flow Statement
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.