Income Statement Flashcards
(7 cards)
Major income statement
Sales / Fees.
Group 1 expenses
the name of this expense category will be provided and will be appropriate to the service firm being assessed, eg Plumbing Expenses for a Plumber
These are comprised of Distribution expenses (as per trading entity) and any other expenses specific to the provision and delivery of the service.
Administrative expenses
Administrative expenses are costs associated with the administration of the entity as a whole.
Examples (not limited to): Office Salaries/Wages, Rent, Insurance, Depreciation on Office Equipment/Buildings, Telephone, Accountancy Fees
Finance cost
Finance costs arise from an entity financing its operations from external sources. Finance Costs are limited to different types of interest paid.
Examples: Interest on Overdraft, Interest on Loan, Interest on Mortgage.
Other income (revenue)
Other income is income incidental to the main activity / ies for a service business such as interest received, dividends received, rent received
Other income (revenue)
Other income is income incidental to the main activity / ies for a service business such as interest received, dividends received, rent received
Distribution costs
not sure
