The income statement is an important document for businesses of all sizes. The income statement contains several important financial pieces of information used to calculate profit and loss. We've listed a few of them below.
Operating income
Operating income includes all the money the business earns from providing a service or selling goods.
Non-operating income
Income earned through non-core business activities, such as rent maldives b2b leads from property owned by the business or royalties from a partnership.
Earnings
Often called other income, this is money that the business earns outside of its core operations. For example, it could be money from selling land or an old vehicle.
Earnings
Expenses
Expenses are money spent on goods or services to run a business. They are recorded at the time of purchase. Expenses are different from expenses, which are typically recorded over a period of time. For example, if you spend $10,000 on a copier and pay it off right away, it would be listed as an expense. But if you pay off a printer over several years, it would be an expense.
Cost of goods sold
Known as COGS, these are the costs associated with selling your products. They include the materials needed to develop your goods and the labor required to bring them to market.
Cost of goods sold
Operating expenses
These are costs that are not connected to the goods or services you provide. They can include rent, office supplies, and utilities, among other things.
Pre-tax earnings
Who Uses the Income Statement?
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