Anonymous
Anonymous asked in Business & FinanceSmall Business · 10 years ago

What is an income statement and a balance sheet and what information is on these documents?

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  • Anonymous
    10 years ago
    Favorite Answer

    Income statement also referred as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations

    Example

    - INCOME STATEMENT BOND LLC -

    For the year ended DECEMBER 31 2007

    € €

    Debit Credit

    Revenues

    GROSS PROFIT (including rental income) 496,397

    --------

    Expenses:

    ADVERTISING 6,300

    BANK & CREDIT CARD FEES 144

    BOOKKEEPING 3,350

    EMPLOYEES 88,000

    ENTERTAINMENT 5,550

    INSURANCE 750

    LEGAL & PROFESSIONAL SERVICES 1,575

    LICENSES 632

    PRINTING, POSTAGE & STATIONERY 320

    RENT 13,000

    RENTAL MORTGAGES AND FEES 74,400

    TELEPHONE 1,000

    UTILITIES 491

    --------

    TOTAL EXPENSES (195,512)

    --------

    NET INCOME 300,885

    BALANCE SHEET

    A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.

    The balance sheet must follow the following formula:

    Assets = Liabilities + Shareholders' Equity

    Sample Balance Sheet

    Sample Balance Sheet

    For the Month Ended __________.

    Asset Liability

    Cash

    $15,300

    Accounts Payable

    Accounts Receivable

    1,000

    Equity

    $600

    Supplies

    500

    Sample Business Plan, Capital

    51,200

    Land

    10,000

    Other

    Building

    25,000

    Total Liabilities

    Total Assets

    51,800

    Owner's Equity

    51,800

    ========

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  • 3 years ago

    stability sheet shows surely 2 strains: a million. How plenty asset I even have,in a categorised order. 2. How plenty debt I would desire to be paid, in a categorised order. stability Sheet says many stuff: - have i won or lost - am i in wanting money - do the hobbies replace right into a snowball earnings fact (P&L) shows how the consequence of stability Sheet occured. with a view to appreciate the stability Sheet, you will desire to examine and understand the P&L. you will come across out which production group, which client group, which industry section which merchandising and marketing attitude is resulted interior the earnings or loss shown interior the stability Sheet. pay interest: Many criminal or perceptual purposes lead the numbers tutor a incorrect effect. Your inventories won't properly worth as much as you spot it interior the BS. Your type of sales, fee of sales, fixed costs etc. won't be ideal to envision the earnings/loss. finally, you will desire to examine the P&L comparing the annual Plans, Forecasts etc. intimately of your enterprise variety (Product group, client group, sales areas, etc. in needed dimensions.)

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