CPA会计英语教学课件3-4.ppt

Accounting English Lesson Four Income Statement Expenses Operating Expenses Other Expenses Selling Expenses Administration Expenses Interest Expenses Extraordinary Item Accounting English Lesson Four Income Statement Do u know the relationship between the IS BS? The net profit is transferred to the balance sheet of the business as part of the proprietor’s capital. … …. I see. Accounting English Lesson Four Income Statement Profit and loss account for the year ended… ￡m Turnover X Cost of sales (X) Gross profit X Distribution costs (X) Administrative expenses (X) Operating profit X Interest payable (X) Investment income X Profit on ordinary activities before taxation X Taxation (X) Profit on ordinary activities after taxation X Extraordinary items (X) Profit for the financial year X Dividends paid and proposed (X) Retained profit for the financial year X Accounting English Lesson Four Income Statement Income statement for the year ended... $m Revenue X Cost of sales (X) Gross profit X Distribution costs (X) Administrative expenses (X) Profit from operations X Finance cost (X) Investment income X Profit before tax X Income tax expense (X) Net profit from ordinary activities X Extraordinary items (X) Net profit for the year X Accounting English ii iii i Gross profit* *Gross profit = sales less cost of sales Plus any other income from sources other than the sales of goods Minus other expenses of the business, not included in the cost of goods sold Net profit is: Lesson Four Income Statement Accounting English Income statement is prepared to present the operating results of an organization for a particular period. Lesson Four— Exercise a What are the purpose of an income statement? Accounting English They are revenue, cost of goods sold and operating expenses. Lesson Four— Exercise b. What are the major categories of the income statement for a merchandising company? Accounting English Gross sales =quantities × selling price