3. At the end of this session you will be able to…
Apply the basic concepts of Financial Management to
various business practices.
Describe the components of Profit and Loss Statement.
Explicate components of Balance sheet.
Differentiate between Assets and Liabilities.
Analyze the Financial Numbers of the Company based
on the provided report.
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5. A Company's Profit and Loss or Income
Statement is a record of its earnings or
losses for a given period.
It reflects the amount the Company
earned (revenues) and the amount a
Company spent (expenses) during this
period.
It measures the profitability of the
Company over a period of time, which
is generally a financial year.
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6. In the Income Statement the
Bottom Line refers to the
made for the
period under consideration
and the top line refers to
.
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7. All and are
the components of Profit and Loss Account.
A profit and loss statement is based on
two basic equations:
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8. A Typical Profit and Loss Statement would look like-
Sales
Less: Sales Returns
Less: Cost of Goods Sold
Gross Profit
Less:
Administrative Expenses
Sales and Advertisement Expenses
Earnings before Depreciation Tax and Interest
Less: Depreciation
Interest
Profits before Tax
Less: Tax expenses
Profit after Tax
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A Company's Profit and Loss or Income Statement is a record of its earnings or losses for a given period. It reflects the amount the Company earned (revenues) and the amount a Company spent (expenses) during this period. It measures the profitability of the Company over a period of time, which is generally a financial year.
A Company's Profit and Loss or Income Statement is a record of its earnings or losses for a given period. It reflects the amount the Company earned (revenues) and the amount a Company spent (expenses) during this period. It measures the profitability of the Company over a period of time, which is generally a financial year. In the Income Statement the bottom line refers to the net profit made for the period under consideration and the top line refers to sales income.
All expenses, losses, incomes and gains are the components of Profit and Loss Account. A profit and loss statement is based on two basic equations:Gross profit = Sales – Cost of Goods Sold Net Profit = Gross Profit – Expenses