Category: Financial Accounting Review

Elements of Income Statement Revenues and expenses are the elements of income statement. Revenues Expenses Revenue 1. Revenue represents an increase in resources from the

Operating Expenses Rent expense Salaries expense Supplies expense Insurance expense Depreciation expense Advertising expense Travel expense Communication expense Utilities expense Operating expenses include expense accounts

Nonoperating income and expenses 1. Nonoperating expenses and losses include expense and loss accounts that are due to the transactions other than the primary operations

Net Income, Retained Earnings and Dividends 1. Income before income taxes 2. Income taxes expense 3. Net income 4. Earnings per share (EPS) Net Income

Financial ratios 1. Profitability ratios 2. Liquidity ratios 3. Solvency ratios 4. Activity ratios Profitability ratios 1. What are the examples of ratios that provide

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