From the course: Finance for Non-Financial Managers (2015)
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Overview of the income statement
From the course: Finance for Non-Financial Managers (2015)
Overview of the income statement
- The second primary financial statement is the income statement. The income statement tells us revenues minus expenses, and that equals net income. We use the term revenues and expenses all the time, so let's make sure we know what these words mean. In an accounting context, revenue means the amount of assets generated in doing business. And different companies generate assets in different ways. Walmart, for example generates assets by putting things on shelves that you and I buy. We pay Walmart more for the inventory than they themselves paid for it. That's how Walmart creates assets. Microsoft creates assets by creating software and hardware that you and I then buy and we pay Microsoft for those things. Disney has consumer products. They have cruises. They have theme parks. We pay to use those things or to buy those products, and that's how Disney generates assets. Revenue is the amount of assets generated in…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.