BUSI 1101 Chapter Notes - Chapter 1: Issued Shares, Share Capital, Income Statement

• School: Memorial University
• Department: Business Administration
• Course: BUSI 1101
• Professor: N Wans

Document Summary

These are the most commonly used statements. Quarterly financial statements aka interim financial statements. Financial statements must be produced annually, and quarterly, by public corporations: often produced monthly for internal uses. Fiscal year: an accounting time period that is one year long. Reports the success or failure of the company"s operations: annually, monthly or quarterly. Aka statement of earnings or statement of profit and loss. Lists the company"s revenues first and then its expenses. Expenses are deducted from revenues to determine income (or loss) before income tax. Income tax expense is shown separately, immediately following the income (or loss) Net income (or net loss) is determined by deducting the income tax expense. Cents are not included: should be used in recording transactions in a company"s internal accounting records. External reporting condensing and simplifies information so it"s easier for the reader to understand. Doesn"t matter if data is listed in one column or two.