FAQs tagged as

Income Statement

  1. What's the difference between economic value added (EVA) and accounting profit?

  2. What is accounting fraud?

  3. What does financial accounting focus on?

  4. What is the difference between a balance sheet and a cash flow statement?

  5. What is the difference between an expense and a liability?

  6. What types of companies tend to have the most deferred revenue?

  7. What is the difference between deferred revenue and accrued expense?

  8. What is the formula for calculating inventory turnover?

  9. Why are efficiency ratios important to investors?

  10. How do you calculate diluted EPS using Excel?

  11. When consolidating financials, how do you calculate Enterprise Value in cases that ...

  12. Which financial accounting statement contains information on a company's net sales?

  13. What types of categories appear on a cash flow statement?

  14. What is the formula for calculating profit margins?

  15. What is the formula for calculating EBITDA?

  16. How are the three major financial statements related to each other?

  17. How does fixed costs and variable costs affect gross profit?

  18. What is the difference between a cash flow statement and an income statement?

  19. What is the formula for calculating return on assets (ROA)?

  20. What is the advantage of calculating accrued expenses over prepaid expenses?

  21. Why is overhead cost allocation sometimes manipulated on an income statement?

  22. What is the difference between gross profit, operating profit and net income?

  23. How are cash purchases recorded on a company's income statement?

  24. How are retained earnings related to a company's income statement?

  25. Is residual income considered profit?

  26. What is the difference between residual income and savings?

  27. Why is it that under some circumstances, capital expenditure cannot be tax-deducted ...

  28. What's the difference between an income statement and a balance sheet approach?

  29. How is a deferred tax asset taxed?

  30. What is the difference between tangible and intangible assets?

  31. What is the formula for calculating the quick ratio in Excel?

  32. How do you use Excel to calculate a debt service coverage ratio (DSCR)?

  33. What kind of financial reporting requirements does GAAP set out?

  34. What is the difference between ROCE and ROA?

  35. What is the difference between ROCE and ROOC?

  36. Does a high price to book ratio correspond to a high ROE?

  37. When do companies publish P&L statements?

  38. What is the difference between operating income and EBITDA?

  39. What is the difference between operating income and net income?

  40. What is the difference between operating income and gross profit?

  41. Is operating profit the same as net income?

  42. What is the difference between gross margin and contribution margin?

  43. How do you find a company's P&L statement?

  44. How do you read a P&L statement?

  45. What's an example of a P&L statement?

  46. What is the difference between revenue and income?

  47. What is the difference between revenue and profit?

  48. What is the difference between interest coverage ratio and TIE?

  49. What is accrual accounting used for in finance?

  50. When are expenses and revenues counted in accrual accounting?

  51. What is the difference between a P&L statement and a balance sheet?

  52. What is a P&L statement used for?

  53. Does a capital expenditure (CAPEX) immediately affect income statements?

  54. Where do traders place orders when they identify ascending triangles?

  55. What's the difference between capital expenditures (CAPEX) and operational expenditures ...

  56. What's the difference between capital expenditures (CAPEX) and net working capital?

  57. How do capital expenditures affect (CAPEX) the valuation of a company?

  58. Why is it important to understand the Circular Flow Of Income when making investment ...

  59. What's the difference between cost of goods sold (COGS) and cost of sales?

  60. What's the safest way to invest in high-yielding dividend stocks?

  61. What are some examples of how cash flows can be manipulated or distorted?

  62. How do I calculate cost of goods sold (COGS) using the first in, first out (FIFO) ...

  63. What's the difference between retained earnings and revenue?

  64. What are the differences between comprehensive income and other comprehensive income?

  65. What are the main income statement ratios?

  66. What is the accounting treatment for unusual or infrequent items for IFRS and U.S. ...

  67. What's the difference between profit margin and operating margin?

  68. What are the differences between income statements from merchandising companies vs. ...

  69. How are effective tax rates calculated from income statements?

  70. What are the main differences between single step and multiple step income statements?

  71. Does gross profit include depreciation or amortization?

  72. What are the differences between operating profit and operating income?

  73. When should I use depreciation expense instead of accumulated depreciation?

  74. What does an income statement look like?

  75. What are the income statement presentation formats and what industries use them?

  76. Does gross profit include labor and overhead costs?

  77. What are the differences between gains & losses and revenue & expenses?

  78. Does gross profit account for sales returns?

  79. What are the differences between operating expenses and SG&A?

  80. Why do some companies pay a dividend, while other companies do not?

  81. How do companies calculate revenue?

  82. What's the difference between EBITDA, EBITDAR and EBITDARM?

  83. What is the difference between a compiled and a certified financial statement?

  84. How are a company's financial statements connected?

  85. How rapidly can expanding sales reduce a firm's earnings?

  86. Is it possible for a company to have a positive cash flow and a negative net income?

  87. What are pro forma earnings?

  88. Why do companies postpone earnings announcements?

  89. What's the difference between bottom-line and top-line growth?

  90. Why would my stock's value decline despite good news being released?

  91. When is earnings season?

  92. When should a company recognize revenues on its books?

  93. What happens if a company doesn't think it will collect on some of its receivables?

  94. What does the diluted share price reveal about a company's financial strength?

  95. Where can I find information on different companies so that I won't have to read ...

  96. What is the difference between amortization and depreciation?

  97. Why do companies report earnings at different times?

  98. What is earnings management?

  99. When must a company announce earnings?

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