From the course: Finance and Accounting Tips

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Income statement

Income statement

From the course: Finance and Accounting Tips

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Income statement

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- Back in 2012 when gas was costing most consumers over four dollars a gallon, or .85 Euros per liter ExxonMobil reported a net income of almost 45 billion dollars. At the time, that was the highest net income ever reported. - [Man] But then, in September of 2015 Apple reported an annual net income of over 53 billion, a new world and Olympic record. - Those are big numbers, but just what do they mean? When the business media reports on a companies performance they always reference reported net income. Where does this number come from? Well, the income statement. What is this statement, and what does it tell us? That's the topic of this video. - Now those who set the accounting rules and those who research stock markets and resource allocations have determined that information about earnings and its components measured by accrual accounting generally provides a better indication of enterprise performance than information about current cash receipts and payments. - [Man] This is what…

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