WSP Accounting Crash Course
WSPExam
Accounting
– Income
Crash
Statement
Course
WSPStudy
Exam
Accounting
Guide
– Income
(Wall
Crash
Statement
Street
Course
Prep).pdf
Study
Exam Guide
– Income
(Wall Statement
Street Prep).pdf
Study Guide (Wall Street Prep).pdf
WSP Accounting
Crash Course
Exam – Income
Statement Study
Guide (Wall Street
Prep)
WSP Accounting Crash Course
WSPExam
Accounting
– Income
Crash
Statement
Course
WSPStudy
Exam
Accounting
Guide
– Income
(Wall
Crash
Statement
Street
Course
Prep).pdf
Study
Exam Guide
– Income
(Wall Statement
Street Prep).pdf
Study Guide (Wall Street Prep).pdf
,WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
Terms in this set (33)
Income statement & why its important financial report that depicts the operating performance of a company
over a specific period of time
Its important because it facilitates the analysis of a company's growth
prospects, cost structure and profitability
Analysts an use the IS to identify the components and sources (drivers) of
net earnings
****also referred to as consolidated statement of earnings, the profits and
loss statement, statement of revenues and expenses
Revenue (top line on IS) Revenue represents proceeds from the sale of goods and services
produced or offered by a company; revenue is referred to company top
line.
A company can have other income not tied to core operations (income
for legal settlements, cash collected, etc)
WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
, WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
Accrual basis is revenue must be recorded only According to the revenue recognition principle, a company cannot record
when it is earned and measurable revenue until it is earned -- that is, until that order is shipped to a customer
and collection from that customer, who used a CC, is reasonably assured
Revenue Recognition Method 1: Multiple Fo sales of bundles products, companies should assign individual values
deliverables to each of the bundled components → this is especially relevant in the
software industry
ex: apple selling iphone that has price of hardware + software rights -->
recognize revenue of hardware immediately, but recognize software
revenue evenly over several yrs
Revenue Recognition Method 2: Long-term projects Multiple methods:
1: percentage of completion method: revenues are recognized on the
basis of the % of total work completed during the accounting period (eg
Boeing plan example)
2: completed contract method: rarely used in US, this method allows for
revenue recognition only once the entire project has been completed
WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
WSPExam
Accounting
– Income
Crash
Statement
Course
WSPStudy
Exam
Accounting
Guide
– Income
(Wall
Crash
Statement
Street
Course
Prep).pdf
Study
Exam Guide
– Income
(Wall Statement
Street Prep).pdf
Study Guide (Wall Street Prep).pdf
WSP Accounting
Crash Course
Exam – Income
Statement Study
Guide (Wall Street
Prep)
WSP Accounting Crash Course
WSPExam
Accounting
– Income
Crash
Statement
Course
WSPStudy
Exam
Accounting
Guide
– Income
(Wall
Crash
Statement
Street
Course
Prep).pdf
Study
Exam Guide
– Income
(Wall Statement
Street Prep).pdf
Study Guide (Wall Street Prep).pdf
,WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
Terms in this set (33)
Income statement & why its important financial report that depicts the operating performance of a company
over a specific period of time
Its important because it facilitates the analysis of a company's growth
prospects, cost structure and profitability
Analysts an use the IS to identify the components and sources (drivers) of
net earnings
****also referred to as consolidated statement of earnings, the profits and
loss statement, statement of revenues and expenses
Revenue (top line on IS) Revenue represents proceeds from the sale of goods and services
produced or offered by a company; revenue is referred to company top
line.
A company can have other income not tied to core operations (income
for legal settlements, cash collected, etc)
WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
, WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
Accrual basis is revenue must be recorded only According to the revenue recognition principle, a company cannot record
when it is earned and measurable revenue until it is earned -- that is, until that order is shipped to a customer
and collection from that customer, who used a CC, is reasonably assured
Revenue Recognition Method 1: Multiple Fo sales of bundles products, companies should assign individual values
deliverables to each of the bundled components → this is especially relevant in the
software industry
ex: apple selling iphone that has price of hardware + software rights -->
recognize revenue of hardware immediately, but recognize software
revenue evenly over several yrs
Revenue Recognition Method 2: Long-term projects Multiple methods:
1: percentage of completion method: revenues are recognized on the
basis of the % of total work completed during the accounting period (eg
Boeing plan example)
2: completed contract method: rarely used in US, this method allows for
revenue recognition only once the entire project has been completed
WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf WSP Accounting Crash Course Exam (The Income Statement).pdf
