RSM100Y1 Chapter Notes - Chapter 15: Debt Ratio, Financial Ratio, Accrual
21 Apr 2013
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Income statement: a financial record of a company"s revenues, expenses and profits over a specific period of time. Summarizes a firm"s financial performance over a specific time period, usually a quarter (three months) of a year. Helps decision makers focus on overall revenues and the costs needed to generate these revenues. Not-for-profit organization use the income statement to check whether the revenues from contributions and other sources will cover the organization"s operating costs. Provides many basic data to calculate the financial ratios that managers use in planning and controlling activities. Also called a profit-and-loss statement, p&l statement, statement of comprehensive income (under ifrs) Bottom-line: the final figure on the income statement net income after taxes. Keeping costs under control is important part of running a business. Statement of changes in equity: a record of the change in equity from the end of one fiscal period to the end of the next fiscal period.
