Income Statement & Balance Sheet

Front

The income statement can be expressed as an equation: Revenue-Expenses = Net Income (Loss)

Back

Revenue-Expenses = Net Income (Loss)

Front

The sources of money generated by the sale of products or services.

Back

Revenue

Front

Examples may include salaries, utilities, rent, insurance, and office supplies.

Back

Expense

Front

The difference between revenues and expenses is expressed as a positive or negative.

Back

Net Income (Loss)

Front

What document communicates what the entity owns in terms of assets, what it owes in terms of liabilities, and the difference between those two?

Back

Balance Sheet

Front

Assets = Liabilities + Equity
Options: Balance Sheet, Income Statement

Back

Balance Sheet

Front

Represents the resources owned by the company.

Back

Assets

Front

The difference between what the entity owns and what it owes represents the owners' share of the company.

Back

equity

Front

What a company owes to creditors.

Back

liabilities

Front

Expenses represent a reduction in ___.

Back

equity