Financial Report

What is it?

What Does it Report?

Reports the Net Income of a company

Sections of the Income Statement


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