An income statement is a popular report because it lists a company's revenues minus its expenses—known as an organization's “net income.”
- The second primary financial statement is … the income statement. … That's revenues minus expenses equal net income. … We use the term revenues and expenses all the time, … so let's make sure that we know what these words mean. … In an accounting context, … revenue means the amount … of assets generated in doing business, … and different companies generate assets in different ways. … Walmart, for example, generates assets by putting things … on shelves that you and I buy. … That's how Walmart creates assets. … Microsoft creates assets by creating software and hardware … that you and I then buy, … and we pay Microsoft for those things. … Disney has consumer products. … They have cruises. … They have theme parks. … We pay to use those things or to buy those products, … and that's how Disney generates assets. … Revenue is the amount of assets generated in doing business, … and hopefully, … the assets generated are less than the assets consumed. … Expenses are the amount … of assets consumed in doing business. …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
- 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.