BUSS1030 Lecture Notes - Lecture 7: Net Profit, Matching Principle, Gross Profit

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

Document Summary

Buss1030 lecture 7 income statement (profit & loss statements / statement of. Do income statement first then balance sheet. Aust(cid:396)alia"s (cid:271)a(cid:374)ks ha(cid:448)e (cid:271)illio(cid:374)s of e(cid:454)(cid:272)ess p(cid:396)ofits is (cid:373)ai(cid:374)l(cid:455) due to: Therefore, banks often engage in unethical practices, e. g. providing incorrect advice. Statement of changes in equity (not examined this semester) Users: shareholders see the change in profit earned, how much reserves have changed, etc. Push by shareholders for companies to make profits. Continuing operations revenue, expense, profit before tax, profit after tax from operating activities (main purpose of running business) regular. (cid:271)usi(cid:374)ess does(cid:374)"t offe(cid:396) (cid:272)hoi(cid:272)e of i(cid:374)su(cid:396)a(cid:374)(cid:272)e wait till customer receives product then recognises revenue accrued revenues e. g. d(cid:396) a(cid:272)(cid:272)ou(cid:374)ts re(cid:272)ei(cid:448)a(cid:271)le c(cid:396) sales re(cid:448)e(cid:374)ue (ha(cid:448)e(cid:374)"t (cid:396)e(cid:272)ei(cid:448)ed money) Unearned revenue e. g. d(cid:396) cash c(cid:396) u(cid:374)ea(cid:396)(cid:374)ed re(cid:448)e(cid:374)ue (ha(cid:448)e(cid:374)"t p(cid:396)o(cid:448)ided services/products but already received money) dr unearned revenue cr sales revenue (when earned) Other income gaines normal earnings from non-operating activities (not main purpose of running the business, beyond normal revenue)