The classification by source can be divided into three:
a. Income statement or Statement of Comprehensive Income (SOCI)
b. Statement of Financial Position (SOFIP)
c. Mixed (i.e. combination of income statement and SOFIP)
Income Statement or Statement of Comprehensive Income (SOCI)
The income statement, which is also called the Statement of Comprehensive Income, is one of the main financial statement, along with the balance sheet, the statement of cash flows; and the statement of stockholder’s equity. The income statement is also referred to as the profit and loss statement of income, and the statement of operations. The income statement gives the financial reports of the revenues, gains or profits, expenses, losses. Net income and other totals per period of time shown in the heading of the statement. In the case where the company’s stock is publicly traded, its earnings per share must appear on the face of the income statement. The income statement is very important because it shows the profitability of a company i.e. the financial health of the organization during the time interval specified. This period of time specified that the statement covers is chosen by the organization and can vary overtime.
As it has always been a point of concern that people pay attention to the profitability of a company and this can be as a result of several reasons. For example, let’s picture a company that was not able to operate profitably, the bottom line of the income statement will indicate a Net Loss. Thus, a banker, lender or creditor may be reluctant to extend additional credit to the company. While on the other hand, if a company operates profitably, the bottom line of the income statement will indicate a net profit ...
... middle of paper ...
...values that differ from the amounts reported on the Balance Sheet.
b. Current Assets: current assets such as cash, accounts receivable, inventory, supplies, prepaid insurance etc. are usually close to the amount reported on the Balance Sheet.
c. Current Liabilities: Current liabilities such as Notes Payable (due within one year), Accounts payable, Wages Payable, Interest Payable, Unearned Revenue etc. are likely to have current values that are close to the amounts that is been reported on the Balance Sheet.
Note: By definition, the current Assets and Current Liabilities are “turning over: at least once a year and as a result, the reported amounts are likely to be similar to their current value. The long term Assets and Long Term Liabilities are not “turning over” often and therefore, the amount reported will likely be different from the current value of those items.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Classification of Psychic Experiences Generally speaking, psychic experiences which deal with receiving information from an outside source, either living or passed on can be classified into the following categories: psychometry, telepathy, clairvoyance, clairaudience, automatic writing and channeling. Two more psychic techniques, assumption and projection, deal with transferring the personality to a remote location. Psychometry is the art of receiving information about someone by touching an object commonly carried by that person such as a key chain or jewelry.... [tags: Classification Essays]
1105 words (3.2 pages)
- Plagiarism - Three Types of Cheaters "Fools make researches and wise men exploit them." Merriam-Webster's dictionary defines the word plagiarize as to pass off as one's own the ideas or words of another. Every student knows that plagiarism is dishonest and wrong. Why do so many students do it. Students themselves may not believe that they are plagiarizing. Many students plagiarize because of the diverse types of plagiarism which are often unknown to students. The three major types of plagiarism are shameless, haphazard and self-plagiarism.... [tags: Classification Essays Cheating ]
1464 words (4.2 pages)
- Psychology is known as the study of the mind and behavior through researching, observing, and interpreting. There is a variety of different fields in psychology abnormal psychology, clinical psychology, counseling psychology, developmental psychology, forensic psychology, personality psychology, and social psychology. According to the data from the Bureau of Labor Statistics in the Occupational Outlook Handbook psychology will continue to grow twelve percent which is seen as average in the next ten years (Bureau of Labor Statistics, 2014-15).... [tags: mind, behavior, jean piaget]
2042 words (5.8 pages)
- Today, there are hundreds of thousands of movies and books and games and music albums available in the market that needs rating. And even though the ratings are always a source that is available for the public to use, it is very easy to get these ratings now verses the 20th century, through the Internet. The Internet allows people to easily get access to these ratings done by websites that use specific procedures that they use every time they rate a movie or a game or music for consistency. By allowing easy access to these specific ratings, people are able to see which content is appropriate for their children as well as the accurate reasons why.... [tags: market, classification]
1311 words (3.7 pages)
- ... The second group consists of cannabis plants grow for fiber from Europe and Asia. But human in countenance has changed that. Due to the effect of human selection and movement of the plants, cannabis evolved into many subspecies. Furthermore the evolution of cannabis has been affected by the increased presence of human interaction. The main source of evolution is the impact of human trade for narcotics. The trade system ultimately introduced native cannabis species to each other lowing them to cross, or make hybrids.... [tags: Evolution, Charles Darwin, Natural selection]
884 words (2.5 pages)
- An animal is a living thing which varies from a range of different sizes, shapes, forms and cells which are specialized to carry out certain functions (Quinn, 2003). There are certain functions mutual to all living things which are movement, respiration, sensitivity, growth, reproduction, excretion and nutrition (MRS GREN). These living processes are essential characteristics which are used to define species as living organisms (Worcester, 2015). Carl Linnaeus developed a system where animals were amongst one of the broad group in kingdoms, which he then divided into classes and were further identified by a Genus or a species name and this was known as the Linnaean classification system.... [tags: Species, Life, Organism, Plant]
737 words (2.1 pages)
- ... There are various treatment options including topical, parenteral, physical and biologics available for psoriasis (Table 1) (Fairhurst 2005, Cather 2002, Ashcroft 2000, DANITONV, 1992). The topical application of drugs is the mainstay of treatment for mild to moderate plaque psoriasis and serves as a useful adjunct support to systemic therapy in severe disease (Ashcroft 2000, Katare et al, 2010). Among the various topical drugs available, coal tar is the drug of choice in the most of the developing countries and offers advantages of easy availability, economical, avoidance of systemic side effects and long remission periods (Thami 2002, US 6989247, 6927205).... [tags: classification, treatment, therapy]
534 words (1.5 pages)
- Open sources have provided a useful stream of information for all source collection and analysis within the intelligence community. The use of open source information by the intelligence community is not a new phenomenon. During the technological boom of the 21st century open source has expanded well beyond its original capabilities. There is an important difference however between mere information and intelligence. Open source information is defined as “any and all information that can be derived from overt collection” (Lowenthal 2006, p.... [tags: Intelligence]
589 words (1.7 pages)
- The Origin, Distribution and Classification of Cultivated Broccoli Varieties Of the many different vegetable crops now under cultivation in both the U.S. and abroad, one that has gained increasing importance is that of broccoli. Although it does not constitute a significant portion of most people's diets, it has nevertheless experienced a kind of "revival" in recent years and has become increasingly popular (Schery, 1972; Heywood, 1978). It may even be said that broccoli has emerged from relative obscurity and attained the status of a worthwhile garden vegetable,"(Talbert, 1953).... [tags: Botany]
1667 words (4.8 pages)
- Classification of Various Power Sources for a Car: Petrol, Diesel, and Electricity Most people today fill up their car with different qualities of petrol, because that's what the average car takes. They don't usually consider an alternative for the petrol that they load into their cars. Although petrol is widely used, it is not the only source for a car to get its power from; diesel and electricity are alternatives to the general petrol used by most cars. Although different from each other, diesel and electricity are alternatives to the average gasoline received at a gas station.... [tags: Car Auto Power Gas Diesel]
1319 words (3.8 pages)