Professional Documents
Culture Documents
Chapter 2 Week 2
Chapter 2 Week 2
Statement
of
Comprehensive Income
LESSON TOPICS
• 2.1 Purpose of Income Statement
• 2.2 Elements of Income Statement
• 2.3 Elements of Statement of Comprehensive Income
• (Service Business)
• 2.4 Elements of Statement of Comprehensive Income
(Merchandising Business)
Basic Financial Statements
Balance Sheet
Income Statement
Statement of Cash Flows
Basic Financial Statements
Balance Sheet
Income Statement
Statement of Cash Flows
Income Statement
1. Heading
Answers the three W’s:
Who – the name of the business
What - the name of the statement
When – the date which is for a particular day
2. Body of the statement - states the various revenues generated and
expenses incurred by the business.
“Statement of Allowance”
• Rent Expense - amount incurred/paid for the use of space for the office, store and or
factory area
• Utilities Expense- amount incurred for the use of electricity,
water and telephone facilities.
• Taxes and license expenses - taxes, licenses and other fees paid
or incurred.
• SSS, Pag-ibig, Medicare Contribution- the employer’s share in
the payment of SSS, Pag-ibig and medicare for the welfare of
its employees and workers.
Guess the Company
Statement of
Comprehensive Income
MERCHANDISING BUSINESS
Merchandising Concern
Selling Expenses – pertain to expenses related to selling the products of the company.
Advertising expenses
Rent Expense of the store
Commission expense
Depreciation expense of the store
Depreciation expense of the delivery van
Freight out
And other selling related expenditures
Administrative Expenses - pertain to expenses related to office and administrative
work.
Other expenses – other expenses that are not directly associated with the operating
activities of the business.
Ex. Interest expense, loss from lawsuit, losses in the disposal of fixed assets,
discount loss
Net Sales
Cost of Goods Sold or Cost of Sales