Presentation formats

  • Single-step statement (10): all revenues are grouped together, all expenses are grouped together
  • Multi -step statement (11)
    • Include gross profit
    • Multi-step income statement
  • Gross profit (12)
    • Revenue subtracted cost of producing product or service
  • Operating profit (13)
    • Gross profit – expense for selling/management/general


Income statement: 


  • Revenue: total income generated by the sale of goods or services resulting from its main operating activities before subtracting any expenses. 
  • Gain” another type of revenue that refer to incidental and non-recurring transactions.
  • Net asset value = total value of entities asset – total value of its liabilities, represent net value of an entity
  • Gross profit = revenue – cost of goods sold
  • Simply put your gross revenue is your earnings before you deduct your expenses and your net revenue is your earnings after you subtract your expenses.