BUSS1030 Lecture Notes - Lecture 7: Income Statement, Lecture Recording, Gross Profit

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Week 7 lecture statement of financial performance. Unless the question says to use a classified income statement, use the general one found on lecture recording. Statement of financial performance = profit and loss statement = income statement. Note: income statement and balance sheet isn"t concerned with debits and credits. Nature and purpose of statement of financial performance. Business purpose is to generate profit need income statement to see how much profit generated over a period. Need more info than just balance sheet which is how much wealth held at a point in time. Purpose - to measure and report how much profit (financial progress or wealth) the business has generated over a period. Can indicate how the profit was made. Profit (or loss) is the difference between the increases in owners" equity (capital), known as income, and the decreases in owners" equity, known as expenses.