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First: thesingle-stepEquationsusedfor the preparation ofthe income statementisa report:1.Netsales=sales-(returns +allowances+discountacquired)2. Thecost of goods sold=cost of goodsavailable for sale-goodslasttermCost of goodsavailable for sale=merchandisefirstperiod+NetpurchasesNetpurchases=(PD+expensespurchases)-(returns purchases+allowancespurchases+discountacquired)3.Gross profit=net sales-cost of goods sold4.Netprofit=gross profit+other income-otherexpenses The income statementina reportfor the year ended30/12Sales-Sales returns-AllowancesSales-DiscountallowableNet salesMerchandisefirstterm+Purchases+Purchasesexpenses-Returnspurchases-Purchases Allowances-DiscountAcquired NetpurchasesCost of goodsavailable for sale-MerchandiseanothertermCost of goods soldGross profit Or(total loss)+ Allrevenue-Allexpenses(Net profit or loss) ----------------- Second,multiple steps of income(final accounts) Andbein the form of:-Accounttrading-Profit and lossaccount-AccountSummaryIncome StatementTrading accountTherevenues and expensesassociated with theclosure of thetradingaccountsand thenextractthe resultof the totalprofitorlossoveralland taken toprofit and lossaccount.-qadClosureofaccountsreceivable balances:××of /-trafficking Tothose mentioned×× /inventoryfor the firsttime×× /Procurement×× /sales returns×× salesallowances××/deductionpermitted-qadClosingaccountswithcredit balances:Ofthose mentioned×× /Sales×× /returnsPurchases×× /allowancesPurchases×× /unearneddiscount ××to / Trades3. Theproofis instocklasttime: ××of /inventory(another term) ××to / TradesIsthe result ofthe closure of/ Trades(total profitorlossoverall) inprofit/ Loss /x:In the case ofprofit: ×× of / Trades ××to /profit/ LossIncase of loss: ×× of /profit/ Losesx ××toh/ Trades Profit and loss account:Theother incomeand expenseaccountsin addition tothe closure ofthe totalprofitorlossforthe entiretradingaccountand thenextractthe resultof the net profitornetloss, which closedinh/OwnerGary 1-under closingofaccountsreceivable balances:××of profit/ Loses /x Tothose mentioned×× /water ex××/ Electricity××/wages××h/lease2-under closingaccountswithcredit balances:Ofthose mentioned××/commissionspayable×× /revenueO.malah××/ Propertyrevenues ××toh/ a /x 3. Theclosureisthe result of /profit/ Loses/xinH /Capital: If the result is Netprofit××of /profit/ Loses /x ××to /CapitalNetloss××ofh/Capital ××to/ profit/ Loses /x
List single-step income:
This method is characterized by simplicity, where the elements are determined in two parts when prepared, namely:
A - Part I: revenue, where all revenue is collected, whether operating income or other income, to determine the number total revenue.
B - Part II: expenses, all the elements are grouped expenses, whether the cost of goods sold, or operating expenses, or other expenses or income tax, in order to determine the total number expenses.
List of multiple steps of income:
This method is characterized by providing detailed data on elements of income and expenses, and is based on the separation between the income and expenses of operating the basis of the (regular) and other income and expenses, as well as the separation between gains and losses resulting from the ongoing operations of the project and stalled on the one hand and between gains and losses arising from the ordinary and extraordinary activities on the other hand. This list important numbers for users of financial statements, such as No. gross profit, operating profit, and taxes on operating profit, and net profit. Therefore, this method gives a detailed picture of revenue and expense items.
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