Income Summary
Here we will discuss, what is income summary and its importance.
What is an Income Summary?
An Income Summary reports a business’s revenues, expenses, and overall profit or loss for a specific period of time.
Parameters
We will understand some of the parameters of the Income Summary here.
Sales Revenue - The revenue earned through selling the products or services.
Cost of Goods Sold - The direct cost incurred in selling the products or services.
Gross Profit - Gross profit is calculated by subtracting the cost of goods sold from the revenue.
General and Administrative Expenses - These are the costs incurred in running the business, for example, salaries, wages, rent, office and utilities expenses.
Earnings Before Tax - Total income before tax.
Net Earnings - Total revenues minus total expenses.
Retained Earnings - Net earning of the business.
The Income Summary is automatically prepared by Veepan, based on
Sales Entry
Purchase Entry
Asset & Expense Entry
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