Financial Report

What is it?

What Does it Report?

Reports the Net Income of a company


Sections of the Income Statement




Section

Information Presented



Heading- Company Name, Accounting Period



Revenue- The amount of money a company brings in



Expenses- Costs to run the company



Net Income- The amount of Profit/ and or Loss a Company has.




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What does it report?

Changes in Owner's Capital


Sections of the Statement of Changes in Owner’s Equity:




Heading- Accounting Period, Starting Balance



Beginning Capital- The beginning balance of a company for that accounting period, if it’s a new company then it has a balance of $0



Increases in Capital- Would be Net Profit, Investments by the Owner



Decreases in Capital- Withdrawals by Owner



Ending Capital- After all the Increases and Decreases occur the remaining balance




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What Does it Report?

States the financial position at a given point in time.


Sections of the Balance Sheet:




Heading- States the date



Assets- All the assets that a company has.



Liabilities- List of the company’s Liablities



Owner’s Equity- The number that comes from the Owners Equity Statement




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James Webb: How to Read a Financial Statement