Cut line in the Profit and Loss Statement effortlessly

Aug 6th, 2022
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How to Cut line in the Profit and Loss Statement

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in this video youll learn whats an income statement is Ill show you what it looks like and how you can use it to measure a businesss financial performance hey there welcome back to accounting stuff Im James and in todays video were going to cover the income statement also known as the profit and loss statement or the PL for short this is one of the three major financial statements in accounting along with a balance sheet and the cash flow statement collectively these reports give us an impression of the businesss financial health so its important that we understand how they work Ive already made videos covering the balance sheet and the cash flow statement which you can find linked up here and down below in the description but up until now I havent posted a video yet on the income statement and Ive received a lot of requests from you guys to cover this topic so thanks for all these particularly from one subscriber so Nili if youre watching this video goes out to you good

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Bottomline usually shows the efficiency of the company in controlling costs even as it delivers higher sales. A company that is growing its net earnings or reducing its costs is said to be improving its bottomline.
More specifically, the bottom line is a companys income after all expenses have been deducted from revenues. These expenses include interest charges paid on loans, general and administrative costs, and income taxes. A companys bottom line can also be referred to as net earnings or net profits.
The top line refers to the sales or the revenues of a company which is the total income generated during a particular period. The bottom line is the net profit of the company which is after all operating expenses, depreciation, interest and taxes. The bottom line is what the company actually generates for shareholders.
: the primary or most important consideration. : the line at the bottom of a financial report that shows the net profit or loss. : financial considerations (such as cost or profit or loss) : the final result.
The top line item on the income statement refers to a companys gross sales or total revenue and the bottom line, which is often listed at the end of the income statement, is the net income (also be referred to as net earnings or net profits) generated by the company after deducting the cost of goods sold (including
It begins with an entry for revenue, known as the top line, and subtracts the costs of doing business, including the cost of goods sold, operating expenses, tax expenses, and interest expenses. The difference, known as the bottom line, is net income, also referred to as profit or earnings.
Below-the-line costs are the other expenses that keep the company goingthe cost of printer paper and fax machines, management and human resources, advertising campaigns, not to mention the salaries of the accounting department itself.
What is the top line? A companys top-line refers to the top line of their PL statement, which displays revenue generated through total sales of products and services. Analyzing top-line growth, therefore, means evaluating your marketing and sales growth and performance to make corresponding business decisions.

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