ACC201 CASE. SLP and TD
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background.docx
Module 2 - Background
Income Statement
The income statement measures the success of the company. It shows how much revenue a company earned over a defined time period (a year or less). Costs and expenses incurred to generate revenues are subtracted to show how the company’s net income or loss. Income or loss is not the same as cash flow. A company can be profitable, but have poor cash flow or vice versa.
It may be fairly simple to prepare an income statement for a one-person company providing only one service and all payments are in cash. However, for large corporation there are many complications and issues to consider in preparing an income statement that fairly reflects the success of the company.
Required Materials
Read the appropriate chapters in one of the following text(s):
Edwards, J.D. & Hermanson, R.H. (2007) Accounting Principles: A Business Perspective. First Global Text Edition, Volume 1. Financial Accounting, pp. 250 – 271. Retrieved from http://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%201.pdf
or
Walther, L.M. (2010). Principles of Accounting: A Complete Online Text, chapter 3. Retrieved from http://www.principlesofaccounting.com/
and Gangwar, Sharda & Gangwar, D.K. (2009). Fundamental Principles of Accounting, Global Media (read chapter 8), from library portal.
Murthy, Guruprasad (2009). Financial Accounting, Global Media (read Module 2), from library portal.
Apple Investor Relations (n.d.) retrieved from http://investor.apple.com/
Samsung Investor Relations (n.d.) retrieved from http://www.samsung.com/us/aboutsamsung/ir/newsMain.do
