What does the income statement include?
1. Main business income: refers to all kinds of income obtained by the company from selling goods or providing services in the business activities of the enterprise;
2. Operating costs and taxes: Operating costs are mainly the costs and expenses that the company needs to pay directly to generate main business income. Business tax is a tax directly linked to sales, which usually includes value-added tax, urban construction tax and education surcharge.
3. Period expenses: various expenses not directly related to selling products or providing services during the financial accounting period, usually including marketing expenses, management expenses and financial expenses;
4. Gains and losses from changes in asset value: mainly the gains or losses provided to the company by changes in property prices;
5. Investment income: it is the income obtained by the company's public investment;
6. Operating profit: it is the profit from the main business income after deducting operating costs, value-added tax and three expenses, plus other business profits;
7. Non-operating income and expenses: refers to the inflow or outflow of company funds caused by some activities unrelated to production and operation or unintentional activities, in addition to normal production, operation and investment activities.
What is the income statement?
The income statement is a financial report that reflects the company's operating results in a certain accounting year. There are two commonly used income statement file formats in the world: one-step format and multi-step format. One-step method is to add up the total income of the current period, and then add up all the expenses to calculate the current income at one time. Its advantage is that the information provided is original records and easy to understand. Multi-step method is to calculate all kinds of profits in multiple steps to get pure profits, which is helpful for users to compare and analyze the operating conditions and capabilities of enterprises.
Structure of income statement:
The income statement usually has a title and a positive statement. In the table header, fill in the table name, enterprise, distribution date, table serial number, currency name, quantity unit, etc. Be specified. The previous table contains the main body of the income statement, reflecting the various items and calculation process of the production and operation results, so this table is also called the profit and loss statement. This paper mainly writes about what knowledge points are included in the income statement, which is for reference only.