Easily Hide Cross Out Option into the 12 Month Income Statement

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How to Hide Cross Out Option into the 12 Month Income Statement

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in our last video we talked about how to put together a single step income statement and basically what we did was we took all our revenues and we subtracted all our expenses and that gave us our net income but the problem with that was that we just laundry listed all our revenues and all our expenses and we didnt take the time to break them into different categories which might be informative about telling us which types of expenses are likely to recur in future periods right so if you have a one-time gain or loss on the sale of an asset you might not expect that to recur the next year whereas if you have revenue thats from sale that would be expected to recur year after year because thats all fur makes money by selling products or services so lets put together a multi-step income statement and well compare and contrast how it relates to a single step income statement so Ive got a list of accounts here for you and were going to use these accounts to create a multi-step income s

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What causes net income to be understated?

Explanation: Failure to record revenue earned but not billed will result to the understatement of total revenues. Understatement of revenues will also result to understatement of net income, and total equity particularly the retained earnings account at the end of the period.

What happens to net income if expenses are overstated on the income statement?

If you overstate net income, you inflate retained earnings and owners equity, because you add net income to retained earnings at the end of the period.

Can a company can show profit on an income statement and still run out of cash?

Cash and profit are not the same. A company can be profitable and still run out of cash. And if it runs out of cash it may have to close its doors.

What is a 12-month income statement?

Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures. A companys trailing 12 months represents its financial performance for a 12-month period; it does not typically represent a fiscal-year ending period.

What will happen if the expense is higher than the net income?

A net loss occurs when the sum total of expenses exceeds the total income or revenue generated by a business, project, transaction, or investment. Businesses would report a net loss on the income statement, effectively as a negative net profit.

How are discontinuing operations to be reported on an income statement?

Discontinued operations is an accounting term for parts of a firms operations that have been divested or shut down. They are reported on the income statement as a separate entry from continuing operations.

What happens when you overstate expenses?

If you overstate sales or understate expenses, youll pay more income tax than necessary. To understand why, you must be familiar with how an income statement works. In some cases, financial misstatements are due to errors or incomplete information.

How do expenses affect net income?

Net income can be positive or negative. When your company has more revenues than expenses, you have a positive net income. If your total expenses are more than your revenues, you have a negative net income, also known as a net loss.

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