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    Introduction: The Statement of Profit or Loss

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    Ronnel Villaceran Sayson
    The statement of profit or loss summarizes revenues, costs, and expenses incurred during a period of time such as a quarter or year. It is one of three key financial statements that public companies issue, along with the balance sheet and cash flow statement. The statement of profit or loss shows revenue, expenses, and net income. Net income represents the total profit of the business for the period after deducting all related costs and expenses from revenues. The example provided shows a statement of profit or loss for Micro Fund Inc. for the year ended December 31, 2015, with financial income, costs, operating expenses, and net income calculated.

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    Introduction: The Statement of Profit or Loss

    Uploaded by

    Ronnel Villaceran Sayson
    45 views4 pages
    The statement of profit or loss summarizes revenues, costs, and expenses incurred during a period of time such as a quarter or year. It is one of three key financial statements that public companies issue, along with the balance sheet and cash flow statement. The statement of profit or loss shows revenue, expenses, and net income. Net income represents the total profit of the business for the period after deducting all related costs and expenses from revenues. The example provided shows a statement of profit or loss for Micro Fund Inc. for the year ended December 31, 2015, with financial income, costs, operating expenses, and net income calculated.

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    ACCOUNTING

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    Atab Report

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    The statement of profit or loss summarizes revenues, costs, and expenses incurred during a period of time such as a quarter or year. It is one of three key financial statements that public companies issue, along with the balance sheet and cash flow statement. The statement of profit or loss shows revenue, expenses, and net income. Net income represents the total profit of the business for the period after deducting all related costs and expenses from revenues. The example provided shows a statement of profit or loss for Micro Fund Inc. for the year ended December 31, 2015, with financial income, costs, operating expenses, and net income calculated.

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    45 views4 pages

    Introduction: The Statement of Profit or Loss

    Uploaded by

    Ronnel Villaceran Sayson
    The statement of profit or loss summarizes revenues, costs, and expenses incurred during a period of time such as a quarter or year. It is one of three key financial statements that public companies issue, along with the balance sheet and cash flow statement. The statement of profit or loss shows revenue, expenses, and net income. Net income represents the total profit of the business for the period after deducting all related costs and expenses from revenues. The example provided shows a statement of profit or loss for Micro Fund Inc. for the year ended December 31, 2015, with financial income, costs, operating expenses, and net income calculated.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 4

    Statement of Profit or Loss

    Introduction: The Statement of profit or loss

    summarizes of the revenues, costs and expenses incurred during a specific period
    of time, usually a fiscal quarter or year. Commonly referred to as the income statement,
    is one of three financial statements every public company issues quarterly and annually,
    along with the balance sheet and the cash flow statement.

    Body:

    Revenue is all income that a company receives.

    Expenses is incurred to produce your company’s revenue. Separate your expenses


    into various categories to help you better see how money is being spent.

    Net income is the final amount of the statement profit or loss, and it represent the net
    total profit earned by the business during the period, above and beyond all related costs
    and expenses.

    Example:

    Prepare an Income Statement for Micro Fund Inc. for the period ended December
    31, 2015, on the basis of the information supplied.
    Micro Fund Inc.

    STATEMENT OF PROFIT OR LOSS / INCOME STATEMENT

    For the period ended December 31, 2015

    FINANCIAL INCOME:
    Interest on Current & Past Due Loans 4,500

    Interest on Investments 200

    Loan Fees/Service Charges 1,500

    Total Financial Income 6,200

    FINANCIAL COSTS:
    Interest on debt 600

    Interest paid on deposits 20

    Total Financial Costs 620

    GROSS FINANCIAL MARGIN 5,580

    Provision for Loan Losses 1,000

    NET FINANCIAL MARGIN 4,580

    Operating Expenses
    Salaries & Benefits 2,000
    Rent 425
    Utilities 35
    Office Expenses 275
    Travel 145
    Depreciation 110
    Equipment Leasing 700
    Software 500
    Other 200
    Total Operating Expenses 4,390

    NET INCOME FROM OPERATIONS 190

    Grant Revenue for Operations 2,000

    Excess of Income over Expenses 2,190


    Conclusion:

    Therefore I conclude that all companies need to make statement of profit or loss

    generate revenue to stay in business. Because Revenue are used to pay expenses,
    interest payments on debts, and taxes owned to the Government. And the business
    paid the amount left over is also called Net income.

    Recommendation:

    So, Statement of profit or loss is important in every businesses because we need


    to know how to compute the revenue or sales, expenses and the net income in our
    company so that we will know that our company is gaining or losing. And I recommend
    that we should know how to make the statement of profit or loss because it will help the
    company’s growth.

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