(WIP) ACC 350 Exam 1 Study Material
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Pg. 10<br />
Sarah Allison Takash<br />
<strong>ACC</strong> <strong>350</strong>, Spring 2018<br />
<strong>Exam</strong> 1 <strong>Study</strong> <strong>Material</strong><br />
16. Income Statement Quick Facts<br />
a. Is comparative - meaning it represents changes over a period rather than depicting a<br />
single point in time<br />
b. Facilitates determination or prediction of<br />
i. profitability<br />
ii. investment value<br />
iii. creditworthiness<br />
iv. risk<br />
v. Amounts, timing and uncertainties of future cash flows<br />
c. Method of income statement measurement = transaction approach<br />
i. Focuses on income-related activities that occurred in the period<br />
ii. Can further classify income by categories, such as:<br />
1. Customer<br />
2. Product line<br />
3. Function<br />
4. Operating & non-operating<br />
5. Continuing & discontinued<br />
6. Regular & non recurring<br />
iii. Major elements:<br />
1. Revenues<br />
a. Inflows or enhancements of assets<br />
b. <strong>Exam</strong>ples:<br />
i. Sales<br />
ii. Fees<br />
iii. Interest received<br />
iv. Dividends received<br />
2. Expenses<br />
a. Outflows or using up of assets<br />
b. <strong>Exam</strong>ples:<br />
i. COGS<br />
ii. Depreciation<br />
iii. Rent paid<br />
iv. Interest paid<br />
v. Wages paid
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