Revenues, Expenses, and Net Profit

Discover the first major financial statement—the income statement—and its core equation: revenues – expenses = net profit.

Course Progress

Course Description

In the second lesson of our “Accounting 101” series, “Revenues, Expenses, and Net Profit,” you will learn about the income statement, the first major financial statement. We prioritize the income statement for its intuitive nature, making it easier for beginners to get started. The income statement is essential for analyzing a company's financial performance, and net profit is a critical measure of that performance. By mastering these concepts, you will be well-equipped to assess a company's profitability and make more informed financial decisions.

By the end of this course, you will able to answer questions such as:

• Why is the income statement analogous to a “movie” about the business?
• What does the income statement reveal about a business?
• How can the net profit margin be used to compare companies of different sizes?

Introduction to the Income Statement

Defining Revenues

Revenue Calculation by Unit

Revenue Calculation by Customer

Defining Expenses

Visual Guide to the Income Statement Part 1

Visual Guide to the Income Statement Part 2

Visual Guide to the Income Statement Part 3

Net Loss

Net Profit Margin

Math Essentials: Percentage Change Calculation Part 1

Math Essentials: Percentage Change Calculation Part 2

Course Review

Course Quiz

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