Statement of Comprehensive Income and Financial Position

These flashcards provide key definitions and explanations of financial terms related to the statement of comprehensive income and financial position.

Statement of Comprehensive Income

A financial statement that shows a company's revenue, expenses, and profits including other comprehensive income.

Gross Profit

Revenue minus cost of sales, representing the profit a company makes after deducting the costs associated with producing its goods.

Non-Current Assets

Long-term investments or assets that will not be converted to cash within a year, such as property, plant, and equipment.

Equity

The residual interest in the assets of the entity after deducting liabilities, often represented as share capital and retained earnings.

Current Liabilities

Obligations or debts that are due to be settled within one year, such as trade payables and short-term borrowings.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Statement of Profit or Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period.

Inventory

Goods available for sale and raw materials used to produce goods available for sale.

Allowance for Receivables

A contra asset account used to estimate the portion of accounts receivable that may not be collectible.

Comprehensive Income

Total change in equity from non-owner sources, including all revenues, expenses, gains, and losses.