Professional Documents
Culture Documents
Boundless Lecture Slides: Available On The Boundless Teaching Platform
Boundless Lecture Slides: Available On The Boundless Teaching Platform
Boundless Lecture Slides: Available On The Boundless Teaching Platform
Available on the Boundless Teaching Platform Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless Teaching Using Boundless Presentations
Platform
Boundless empowers educators to engage their students
with affordable, customizable textbooks and intuitive
teaching tools. The free Boundless Teaching Platform
gives educators the ability to customize textbooks in
The Appendix
more than 20 subjects that align to hundreds of popular The appendix is for you to use to add depth and
titles. Get started by using high quality Boundless books, breadth to your lectures. You can simply drag and
or make switching to our platform easier by building from
Boundless content pre-organized to match the assigned drop slides from the appendix into the main
textbook. This platform gives educators the tools they presentation to make for a richer lecture
need to assign readings and assessments, monitor experience.
student activity, and lead their classes with pre-made
teaching resources.
educators@boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
About Boundless
Boundless is an innovative technology company making education more affordable and
accessible for students everywhere. The company creates the world’s best open educational
content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless
integrates learning technology into all its premium books to help students study more efficiently
at a fraction of the cost of traditional textbooks. The company also empowers educators to
engage their students more effectively through customizable books and intuitive teaching tools
as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free
and premium content each month across the company’s wide distribution platforms, including its
website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with
Boundless, visit boundless.com.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Understanding the Income Statement
Detailed Review of
the Income
Statement
Revenue Recognition
Expense Recognition
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement > Understanding the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/understanding-the-
income-statement-84/
Detailed Review of the Income Statement > Revenue Recognition
Revenue Recognition
• The Importance of Timing: Revenue and Expense Recognition
• Current Guidelines for Revenue Recognition
• Recognition of Revenue at Point of Sale or Delivery
• Recognition of Revenue Prior to Delivery
• Recognition of Revenue After Delivery
• Differences Between Accrual-Basis and Cash-Basis Accounting
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/revenue-recognition-85/
Detailed Review of the Income Statement > Expense Recognition
Expense Recognition
• Expense Recognition
• Current Guidelines for Expense Recognition
• Differences Between Accrued and Deferred Expenses
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/expense-recognition-86/
Detailed Review of the Income Statement > Additional Income Statement Considerations
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/additional-income-
statement-considerations-87/
Detailed Review of the Income Statement > Reporting and Analyzing the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/accounting/textbooks/boundless-accounting-textbook/detailed-review-of-the-income-statement-13/reporting-and-analyzing-
the-income-statement-88/
Appendix
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Key terms
• accrual A charge incurred in one accounting period that has not been paid by the end of it.
• accrual A charge incurred in one accounting period that has not been paid by the end of it.
• accrual accounting refers to the concept of recognizing and reporting revenues when earned and expenses when incurred,
regardless of the effect on cash.
• accrual basis accounting A method of accounting where income is not recorded until earned and expenses are not recorded
until incurred.
• accrue To increase, to augment; to come to by way of increase; to arise or spring as a growth or result; to be added as
increase, profit, or damage, especially as the produce of money lent.
• accrued expense Accrued expense is a liability with an uncertain timing or amount, the reason being no invoice has been
received yet.
• accrued revenue income recognized before cash is received
• capital expenditure Funds spent by a company to acquire or upgrade a long - term asset
• cash-basis accounting A method of accounting where income is recorded when cash is received and expenses are recorded
when cash is paid.
• conservatism A risk-averse attitude or approach; for accounting purposes, it relates to disclosing expenses and losses incurred
immediately and delaying the recognition of revenues and gains until realized.
• consigned good a good sent to another person where the seller still retains ownership until ownership is transferred or the good
is sold
• Cost of Goods Sold refers to the inventory costs of the goods a business has sold during a particular period (sometimes
abbreviated as COGS).
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
• deferral An account where the asset or liability recording cash paid or received is not realized until a future date (accounting
period)
• deferred expense A deferred expense or prepayment, prepaid expense, is an asset representing cash paid out to a counterpart
for goods or services to be received in a later accounting period.
• dilute To cause the value of individual shares to decrease by increasing the total number of shares.
• disclosure The act of revealing something.
• expense In accounting, an expense is money spent or costs incurred in an businesses efforts to generate revenue
• expense In accounting, an expense is money spent or costs incurred in an businesses efforts to generate revenue
• fixed asset Asset or property which cannot easily be converted into cash, such as land, buildings, and machinery.
• FOB Stands for "Free on Board" or "Freight on Board"; specifies which party (buyer or seller) pays for shipment and loading
costs, and/or where responsibility for the goods is transferred.
• gross profit the difference between revenue and the cost of making a product or providing a service before deducting overhead,
payroll, taxation, and interest payments
• income In U.S. business and financial accounting, the term "income" is also synonymous with revenue; however, many people
use it as shorthand for net income, which is the amount of money that a company earns after covering all of its costs.
• income statement Displays the revenues recognized for a specific period and the cost and expenses charged against these
revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes. The purpose of the income
statement is to show managers and investors whether the company made or lost money during the reporting period.
• income statement A calculation which shows the profit or loss of an accounting unit (company, municipality, foundation, etc.)
during a specific period of time, providing a summary of how the profit or loss is calculated from gross revenue and expenses.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Service Delivery
Delivery of goods or service may not be enough to allow for a business to recognize revenue on a sale if there is doubt that the customer will pay what it
owes.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | Technical Services 16 | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sanjoselibrary/5077983155/sizes/l/ View on
Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "Goods for sale, Calangute beach, Goa, India | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/paulmannix/464063059/ View on
Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "Revenues and expenses." CC BY-SA http://commons.wikimedia.org/wiki/File:Revenues_and_expenses.png View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Stock.KCHNG. CC BY http://www.sxc.hu/browse.phtml?f=download&id=424857 View on Boundless.com
Detailed Review of the Income Statement
Income Statement
Operating expenses, non operating expenses and net income are three key areas of the income statement.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Stock.KCHNG. CC BY http://www.sxc.hu/pic/m/a/as/asterisco/353454_piggy_bank_3.jpg View on Boundless.com
Detailed Review of the Income Statement
Income Statement
Income Statements commonly come in two formats
Free to share, print, make copies and changes. Get yours at www.boundless.com
Stock.KCHNG. CC BY http://www.sxc.hu/pic/m/s/sv/svilen001/1388612_market_movements_2.jpg View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Stock.KCHNG. CC BY http://www.sxc.hu/pic/m/d/de/designkryt/387599_a_thousand_dollars.jpg View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | EGL P&L web | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/7paths/3792294012/sizes/m/ View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | y2cary3n6mng-5ha51l-income-statement-example | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sampjb/7690678408/sizes/l/
View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | y2cary3n6mng-5ha51l-income-statement-example | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sampjb/7690678408/sizes/l/
View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "Missouri Revenue suffered in 2009 | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/hotflashblogger/4341243331/ View on Boundless.com
Detailed Review of the Income Statement
Goods in Inventory
Depending on the shipping terms of the sale, a seller may not recognize revenue on goods sold that are pending delivery.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "20111020-FNS-LSC-0063 | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/usdagov/6629278631/ View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | y2cary3n6mng-5ha51l-income-statement-example | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sampjb/7690678408/sizes/l/
View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | y2cary3n6mng-5ha51l-income-statement-example | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sampjb/7690678408/sizes/l/
View on Boundless.com
Detailed Review of the Income Statement
Balance Sheet
Accrued and deferred expenses are both listed on a company's balance sheet.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "DWBA DBS." CC BY-SA http://commons.wikimedia.org/wiki/File:DWBA_DBS.jpg View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "Cashier | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/stefanedberg62/2406508840/ View on Boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "All sizes | y2cary3n6mng-5ha51l-income-statement-example | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/sampjb/7690678408/sizes/l/
View on Boundless.com
Detailed Review of the Income Statement
Attribution
• Wikipedia. "Cash-basis accounting." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Cash-basis_accounting
• Wikipedia. "accrual basis accounting." CC BY-SA 3.0 http://en.wikipedia.org/wiki/accrual%20basis%20accounting
• Wiktionary. "expense." CC BY-SA 3.0 http://en.wiktionary.org/wiki/expense
• Wikipedia. "Expense." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Expense
• Wikipedia. "Accrued expense." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Accrued_expense
• Wikipedia. "Accounting methods." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Accounting_methods%23Accrual_basis
• Wikipedia. "Accounting methods." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Accounting_methods%23Accrual_basis
• Wikipedia. "Revenue expenditures." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Revenue_expenditures
• Wikipedia. "Revenue recognition principle." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Revenue_recognition_principle
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//accounting/definition/revenue-recognition
• Wiktionary. "income." CC BY-SA 3.0 http://en.wiktionary.org/wiki/income
• Wikibooks. "Accountancy/Introduction to Accountancy." CC BY-SA 3.0
http://en.wikibooks.org/wiki/Accountancy/Introduction_to_Accountancy
• Wiktionary. "net income." CC BY-SA 3.0 http://en.wiktionary.org/wiki/net_income
• Wiktionary. "ratio." CC BY-SA 3.0 http://en.wiktionary.org/wiki/ratio
• Wiktionary. "revenue." CC BY-SA 3.0 http://en.wiktionary.org/wiki/revenue
• Wikipedia. "Income statement." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Income_statement
• Wikipedia. "Financial statement analysis." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Financial_statement_analysis
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com
Detailed Review of the Income Statement
Free to share, print, make copies and changes. Get yours at www.boundless.com