FABM | W#2-W#3

STATEMENT OF FINANCIAL PERFORMANCE

INCOME STATEMENT

REPORTS THE COMPANY’S FINANCIAL PERFORMANCE THROUGH PRESENTING THE ENTITY’S REVENUES, GAINS, EXPENSES, AND LOSSES FOR THE PERIOD ENDED

INCOME STATEMENT

PRESENTS THE RESULTS OF THE ENTITY’S OPERATIONS AND FINANCIAL PERFORMANCE THROUGH THE REPORTING OF THE ENTITY’S REVENUES AND EXPENSES

STATEMENT OF COMPREHENSIVE INCOME

PRESENTS THE ENTITY’S NET INCOME, ALONGSIDE THE EFFECTS OF OTHER COMPREHENSIVE INCOME LEADING TO COMPREHENSIVE INCOME

ELEMENTS OF FINANCIAL PERFORMANCE

1. INCOME

2. EXPENSES

INCOME

INCREASE IN ECONOMIC BENEFITS DURING THE ACCOUNTING PERIOD IN THE FORM OF INFLOWS OR ENHANCEMENTS OF ASSETS OR DECREASES OF LIABILITIES THAT RESULT IN INCREASES IN EQUITY, OTHER THAN THOSE RELATING TO CONTRIBUTIONS FROM EQUITY PARTICIPANTS

EXPENSES

ARE DECREASES IN ECONOMIC BENEFITS DURING THE ACCOUNTING PERIOD IN THE FORM OF OUTFLOWS OR DEPLETIONS OF ASSETS OR INCURRENCES OF LIABILITIES THAT RESULT IN DECREASES IN EQUITY, OTHER THAN THOSE RELATING TO DISTRIBUTIONS TO EQUITY PARTICIPANTS

INCOME

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—- ENCOMPASSES BOTH REVENUE AND GAINS

REVENUES

ARISES IN THE COURSE OF ORDINARY REGULAR ACTIVITIES

GAINS

ARE OTHER ITEMS THAT REPRESENTS INCREASES IN ECONOMIC BENEFITS BUT DOES NOT REGULARLY ARISE IN ORDINARY BUSINESS OPERATIONS

EX.) GAIN ON SALE OF ASSETS

EX.)

SALES REVENUE

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A MERCHANDISING COMPANY WHO SELLS THEIR INVENTORIES EARN —— ——, HOWEVER, DECIDED TO SELL THEIR EQUIPMENT AT A PRICE HIGHER THAN ITS CARRYING VALUE, IT’S A GAIN ON A SALE OF EQUIPMENT

GAIN

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A MERCHANDISING COMPANY WHO SELLS THEIR INVENTORIES EARN SALE REVENUE, HOWEVER, DECIDED TO SELL THEIR EQUIPMENT AT A PRICE HIGHER THAN ITS CARRYING VALUE, IT’S A —— ON A SALE OF EQUIPMENT

EXPENSES

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— ENCOMPASSES BOTH EXPENSES AND LOSSES

EXPENSES

ARE DECREASES IN ECONOMIC BENEFITS DUE TO, EX.) SALAIRES, RENT, AND DEPRECIATION

LOSSES

DO NOT ARISE IN REGULAR BUSINESS OPERATIONS SUCH AS LOSS FROM FIRE, LOSS FROM DISASTERS, OR LOSS FROM SALE OF ASSET

SINGLE-STEP INCOME STATEMENT

OFFERS A SIMPLIFIED SNAPSHOT OF A COMPANY’S REVENUE AND EXPENSES

SINGLE-STEP INCOME STATEMENT

THIS STRAIGHTFORWARD DOCUMENT MERELY CONVEYS A COMPANY’S REVENUE, EXPENSES, AND BOTTOM-LINE NET INCOME

MULTI-STEP INCOME STATEMENT

PROVDE AN IN-DEPTH LOOK AT A COMPANY’S FINANCIAL HEALTH, OFFERING DETAILS ABOUT THE COMPANY’S WELLBEING

MULTI-STEP INCOME STATEMENT

CATEGORIZE EXPENSES AS EITHER DIRECT COSTS (AKA NON-OPERATIONAL COSTS), OR INDIRECT COSTS (AKA OPERATIONAL COSTS)

DIRECT COSTS

ALSO KNOWN AS NON-OPERATIONAL COSTS

INDIRECT COSTS

ALSO KNOWN AS OPERATIONAL COSTS

SERVICE COMPANY

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IN PRESENTING THESE ITEMS ON THE STATEMENT OF FINANCIAL PERFORMANCE, A —— —— WILL SEPERATE ALL REVENUES AND EXPENSES (AS SEEN IN THE SINGLE-STEP FORMAT)

MERCHANDISING COMPANY

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A —— —— WILL PRESENT TOTAL SALES AND COST OF GOODS SOLD ON THE FIRST PART OF THE STATEMENT WHICH WILL NET TO THE COMPANY’S GROSS PROFIT BEFORE PRESENTING THE OTHER EXPENSES WHICH ARE CLASSFIED AS EITHER ADMINISTRATIVE EXPENSES OR SELLING EXPENSES (AS SEEN IN THE MULTI-STEP FORMAT)