CPA FAR Exam-Income Statement-By Darius Clark-i75 CPA Review скачать в хорошем качестве

CPA FAR Exam-Income Statement-By Darius Clark-i75 CPA Review

The Income Statement reports a company’s financial performance over a specific period of time (e.g., quarterly, annually). It shows how much revenue the company earned, the expenses incurred, and the resulting net income or loss. https://i75cpareview.com/ 🧾 Format and Components The typical format follows the multi-step income statement, which is commonly tested on the exam. 1. Operating Section Revenue (or Sales) Less: Sales Returns and Allowances Less: Sales Discounts = Net Sales Cost of Goods Sold (COGS) = Gross Profit 2. Operating Expenses Selling Expenses General and Administrative Expenses = Total Operating Expenses = Operating Income 3. Non-Operating Section Other Revenues and Gains Other Expenses and Losses e.g., Interest Expense, Gain/Loss on Sale of Assets = Income Before Tax 4. Income Tax Expense = Net Income from Continuing Operations 5. Discontinued Operations (if applicable) Net of tax Reported separately after net income from continuing operations 6. Net Income Final bottom line figure May also include Earnings per Share (EPS) if it’s a public company 🔍 Key CPA FAR Exam Considerations Discontinued Operations must be presented net of tax and clearly separated. Extraordinary items are no longer allowed under U.S. GAAP (FASB eliminated them). Understand accrual basis accounting, which is used in the income statement. Know how to distinguish between operating and non-operating items. Be prepared to calculate gross profit, operating income, and net income. Be able to adjust and classify unusual or infrequent items.