Academy Of Accounting

Big news! 📣 One of our brilliant students has just secured his Provisional Membership with Chartered Accountants ANZ! 🇦🇺🇳🇿

This is just the beginning of a world-class career in finance. We couldn't be prouder to have played a part in his journey to success. 🚀✨

Anuk Putha, your hard work has paid off!

Are you preparing for your Edexcel or Cambridge IAL examinations?
Don't let the complexity of Accounting hold you back. Join our Accounting in 10 Weeks Program and get exam-ready for May/June 2026!
What we offer:
✅ Comprehensive coverage of Accounting theory.
✅ Practical preparation for Exam papers.
✅ Expert guidance for AS & A2 levels.
Your future starts here. Don't wait—Apply Now!
📲 WhatsApp us: 0770 700 411

Income Statement (Profit & Loss Statement) 📊
An income statement shows how much a business earned, spent, and made (or lost) over a specific period (month, quarter, or year).
What it tells you
Is the business profitable or not?
Where is the money coming from?
Where is the money going?
Basic Format
Copy code

Revenue (Sales)
– Cost of Goods Sold (COGS)
= Gross Profit

– Operating Expenses
= Operating Profit

– Interest & Taxes
= Net Profit (or Net Loss)
Key Components (Simple)
Revenue – Money from sales or services
COGS – Direct cost of producing goods/services
Gross Profit – Revenue − COGS
Operating Expenses – Rent, salaries, utilities, marketing, etc.
Net Profit – Final profit after all expenses and taxes
Example
Revenue: 1,000,000
COGS: 400,000
Gross Profit: 600,000
Expenses: 350,000
Net Profit: 250,000 ✅
Why it’s important
Helps in decision-making
Used by investors & banks
Essential for tax calculation
Shows business performance

Academy of Accounting