COMMERCE 1AA3 Chapter Notes - Chapter 11: Income Statement, Comprehensive Income, Earnings Before Interest And Taxes
5 Dec 2016
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Statement of comprehensive income, and the statement of shareholders" Operating income: we calculate a company"s operating income by deducting its operating expenses from operating revenues, operating incomes is function of a company"s day-to-day business activities. What should you analyzed to gain an overall. Interest income represents the return earned on invested money. Income tax expense = income before income tax (from income statement) x income tax rate. Income tax payable = taxable income (from the income tax return led with tax authorities) x income tax rate. Income tax expense commonly differs from income tax payable because certain revenues and expenses are treated differently for accounting purposes than they are for tax purposes. Discontinued operations: when a company sells or discontinues a component of its business, the income and expenses related to the component must be reported separately under the heading.
