StudentShare solutions
Triangle menu

How Income Statement Can Be Applied in My Everyday Life - Essay Example

Free

Extract of sample
How Income Statement Can Be Applied in My Everyday Life

For instance, they are used by managers to plan for the future and also setting goals for the company upcoming periods. Being a student of accounting and finance, I have utilized the knowledge gained in class to open up an electronic shop. Through the use of the income statement, I have been able to determine my business expenses and sales for a given period. Being the manager of the business, I always ensure that my assistant prepares the income statement every month and also at the end of the fiscal year. Through this operation, I have been able to identify if I am incurring losses or making profits. Incase losses are recorded; I often identify the loopholes in my business and fix them immediately through environment scanning. For purposes of bridging the gap between the profits and losses, I always ensure that I am updated with the new models in the market so as to maintain loyalty with my customers and make more profits. The good thing about the income statements is that they contain expense and revenue categories that are specific regardless of the company or business nature (Walther, 2010). How a Business Manager May Benefit From the Understanding of the Income Statement The better understanding of income statements helps a company in fulfilling and managing the business financial picture. This is because, the income statement is the direct outcome of the information recorded in the ledgers and journals. Furthermore, the information recorded is then transformed into compiled and concise

Check these samples - they also fit your topic

How technology affects my life everyday
have eased the work pressure of women. It has given them more time to work outside and become financially independent. The evolving new gizmos like computer, internet and mobile phones have hugely enhanced communication across globe. While they have facilitated easy way to remain connected with dear ones, they have also provided the companies with opportunities to expand their business across geographical boundaries.
1 pages (250 words) Essay
Application of Financial Statement
The final part of this essay evaluates the importance of the balance sheet and income statement to my career as an investment adviser and my future career of banker. The essay will utilize some secondary sources which will be referred to. This will be aided by critical analysis an explanations of components and importance of financial statements to relevant stakeholders identified above.
9 pages (2250 words) Essay
Principles of logic as applied to my life
Back then,I felt it was a remarkable opportunity imagining my chances of being able to attend fascinating seminars and activities that would improve my potentials as a leading member.Besides training,I looked forward as well to meeting new acquaintances from whom to learn diverse insights on several youth-oriented issues
4 pages (1000 words) Essay
How Statistics Is Applied to Everyday Life and Why It's Useful
Statistics is used in marketing, monitoring, policy development, planning of services and internal research purposes. The truth is that few of us pay attention to these statistics that seem hard to understand, let alone to interpret. Most people are interested in statistics about presidential candidates to determine who is more likely going to win.
7 pages (1750 words) Essay
Critically discuss how one method in Media and Cultural Studies presented in term 2 of the module has been applied to an aspect of everyday life
es not only focus on the overt part of the culture, but probes deeper to understand the different interconnection and complexity of the object of study to include the intangible and symbolic aspect that otherwise could have easily been overlooked towards representing a whole way
8 pages (2000 words) Essay
How technology affects my life everyday
have eased the work pressure of women. It has given them more time to work outside and become financially independent. The evolving new gizmos like computer, internet and mobile phones have hugely
1 pages (250 words) Essay
Principles of logic as applied to my life
Back then, I felt it was a remarkable opportunity imagining my chances of being able to attend fascinating seminars and activities that would improve my potentials as a leading member.
1 pages (250 words) Essay
Effect of Statistics on My Everyday Life
Thus, it not only serves professional research purposes but also the general life in an attempt to understand the life around us. Personally, I have found statistics important in time management.
1 pages (250 words) Essay
Income Statement
Its cost of goods sold is accumulated at $260,000; however, this lacks the calculation of applied overheads. Being a manufacturing company, it has to record the variance between the actual overhead costs and budgeted
1 pages (250 words) Essay
Everyday life
On the other hand, since none of the humans being is self-sufficient, seeking services from others become an inevitable exercise. Consequently, visiting various places in a bid to have these needs met becomes an everyday affair to some.
8 pages (2000 words) Essay
expense and revenue figures. Income statement helps the managers in getting an accurate picture of the expenses and revenue figures as it is prepared monthly, quarterly or yearly. As such, they are used by managers and management team within the company to analyze its operation. Moreover, it is also useful to creditors and investors outside the company for purposes of evaluating performance and profitability of the company. Additionally, it is used by investors and creditors to assess the company’s risk. Thus income statements help the mangers in making company’s policies and choosing of operation choices that will enhance the company’s performance (Porter & Stevenson, 2011). How the understanding of the income statement and balance sheet may be applied in my current or future position For an individual to understand how income statement and balance sheet can be useful, one has to understand the underlying differences. Balance sheet provides an observant with a clear picture of the company’s financial condition as a whole. As such it gives the detail of the company’s intangible and tangible goods that it possesses or owes. The goods can be categorized into liabilities, assets and stakeholders equity. On the other hand, the income statement helps in measuring the company’s expenses and sales for a given period. As such, they are often prepared monthly and yearly. Since I want to pursue my career as a business administrator, having knowledge of the above two financial statements will ensure smooth running of my business or the company I will get employed to offer my services. Given that accounting data provided by income statement are not concrete or absolute, I will be able to make considerable amounts and estimations that are essential in developing accounting measurements that are specific. These measurements are often reported on a monthly, quarterly or yearly basis by the income statement. For instance, they help in providing information on a

Summary

Application of Financial Statement Institution’s name: Date: How Income Statement Can Be Applied In My Everyday Life Financial statements are crucial documents for any organization or an individual operating a business…
Author : rohantiana
How Income Statement Can Be Applied in My Everyday Life essay example
Read Text Preview
Comments (0)
Click to create a comment