Creating an Income Statement

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Objective

I can prepare a simple income statement using provided financial data.

Part 1 of 4

Warm-up video

Steven Force · 3:12

We don't generate video — this one is by Steven Force on YouTube. The practice questions and exit ticket below were drafted by AI for this objective, and every question is editable in the teacher guide.

Part 2 of 4

Key concepts

3 concepts

  1. 1

    An income statement is one of four financial statements and is the first one you will prepare.

  2. 2

    To find net income, take revenues and subtract expenses.

  3. 3

    On an income statement, expenses are listed in order from greatest to least.

Part 3 of 4

Practice

8 questions

1

What is the primary purpose of an income statement?

2

Which of the following is the correct order of items presented on an income statement?

Part 4 of 4

Exit ticket

Quick comprehension check

Prepare a simple income statement using the following information for Smith Company for the month ended December 31, 2023: Service Revenue: $90,000, Rent Expense: $15,000, Salaries Expense: $40,000, and Utilities Expense: $5,000. Show all work.

Sample answer included in the free materials

Get the materials

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