Income Statement Flashcards
(5 cards)
1
Q
What accounts are on the income statement?
A
All income and expense accounts
(ie. sales revenue, rent expense, etc.)
2
Q
How do you format the amounts of the different accounts?
A
Divide them into debit and credit
3
Q
What do you calculate at the bottom?
A
Net income!
4
Q
Net income Formula
A
revenue - expenses
5
Q
Layout of the statement?
A
title etc.
Revenue accounts (in credit)
expense accounts (in debit)
total expenses
Net income
