The INCOME STATEMENT Explained (Profit & Loss / P&L)
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- เผยแพร่เมื่อ 28 พ.ค. 2024
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🖊Income Statement Practice Questions → accountingstuff.com/practice-...
The 'Income Statement', or 'Profit and Loss Statement' (P&L) is one of the three major Financial Statements, along with the Balance Sheet and the Statement of Cash Flows. In this tutorial, you'll find out what the Income Statement is and how you can use it to measure a business's financial performance.
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⏱️TIMESTAMPS
00:00 - Intro
01:02 - Income Statement Definition
01:10 - What a Basic Income Statement Looks Like
02:10 - An Analogy
02:37 - Expanding the Income Statement
03:16 - Direct Costs - Cost of Sales
04:48 - Gross Profit
05:10 - Indirect Costs - Overheads
06:15 - Operating Profit
06:42 - Comparative Periods
07:18 - Example - Imaginary Company
08:17 - Financial Ratio Analysis - Gross Profit Margin
09:34 - Interest Expenses & Tax
10:01 - Net Profit
10:12 - Gross Profit vs Operating Profit vs Net Profit
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Who'd like to see some videos on Financial Ratio Analysis?
TIMESTAMPS
00:00 - Intro
01:02 - Income Statement Definition
01:10 - What a Basic Income Statement Looks Like
02:10 - An Analogy
02:37 - Expanding the Income Statement
03:16 - Direct Costs - Cost of Sales
04:48 - Gross Profit
05:10 - Indirect Costs - Overheads
06:15 - Operating Profit
06:42 - Comparative Periods
07:18 - Example - Imaginary Company
08:17 - Financial Ratio Analysis - Gross Profit Margin
09:34 - Interest Expenses & Tax
10:01 - Net Profit
10:12 - Gross Profit vs Operating Profit vs Net Profit
My exam is in a week hurry!! Great content dude you explain so clearly very helpful for my A Level :)
@@laytonhow1679 Good luck! Hope it goes well
Accounting Stuff yesss pls than you so much for what uve been doing
ME me me yep I would love to see it
You are reading my mind James! yes please ratio analysis. totally subscribing to your channel.
i love having three hour lectures where I get nothing only to come and watch an 11 minute youtube video after where I learn more
U r right🙂
That's because there in the 3hrs lecture, you are expecting the lecturer to come and put in your head without YOU trying to make an effort. That is spoon feeding you were expecting.
Where as here you have put aside your lazy nature and come to learn. Had you done the same for the 3hrs lecture you would have learnt way more you understood in this video.
So put aside your laziness and poisoning ego and start to learn boy.
@@muzzammiledoo3876 okay dude calm down
Know what you mean; Some people are very good at teachers, while others... not so much.
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Thanks Buddy!!!!!!
The Way You Give Priorities to Your Regular Audience!!
Winning Hearts Bro!!!
Haha, thanks!
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Searching the comments to see if Niloy ever crushed his exam
Don't even know why I bother going to class... Every single topic I've had issues with, you've managed to explain flawlessly in 15 minutes or less. Thank you so much!!
No worries Catalina, glad to hear the vids are helping!
For a non-commerce, it's a gift. Thank you for all your videos and vivid examples. These videos may not fetch you a million views but it's a big help for many of us out there, confused and puzzled. So please keep posting your videos and could you please break down the financial statements in part by part and not all in one video. thank you !☺
Thanks for your feedback! Glad to hear that you are finding these videos helpful. Cheers for your suggestion re: breaking the financial statements down, I would most definitely like to do that in the future!
Thanks so much for this. I understand it better when you explain it than my lecturer 😂
Hey Lapine, you are very welcome :)
100000% Wish this guy was my Tutor!
Same here man, old accountants who act all cocky for knowing this stuff make me hate school altogether
one thing is clear from your videos, you know your stuff well and you know how to represent it in a way so that one can retain it for long term.
Appreciate your positive feedback! Thank you for watching.
There is no day I don't watch at least one of your videos. Each of your lesson values more than a Bitcoin! Appreciate very much!
Great to hear you're finding them useful :)
Two minutes in and I already understood what an income statement actually is. Something my lecturer didn't explain over the past weeks and I have a test today. Literally going over all videos relevant to the topics of my test today. You're a gem!
Good luck David!
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Just wanted to thank you for all the videos that you make! I'm currently in my 1st year of university and have an accounting exam coming up & I just discovered your videos and they've already helped me a lot :) You explain everything so clearly and I also like how you edit your videos to support visual learning, so thank you!!
Thank you so much! I'm completely new to accounting and you've made it easier for me to understand, may God bless you!
No worries Skylar, it's a tough subject to understand at first. Glad I could help in some small way. All the best
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Amazing video! I love how you can summarize big topics into concise videos!
I spent 4K and walked away confused and still paying the damn debt...Thank you for the simplicity of explaining the P&L! I would love the ratios and maybe liquidity as well 🤗🤞🏼
Thanks for your request! I plan to cover ratios soon :)
At least it’s only 4k.
This guy is a teacher...not every lecturer can teach..most of them just complicate your life by making accounts look even more difficult
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I needed this quick lesson so much for a small business I started. Your videos have helped monitor cash flow better. Thanks so much James!
Nice one Ivy. Got to keep on top of that cash! Good luck with your business.
I am working in Finance & Accounting for many years, but I really found your videos funny, entertaining and useful. I love watching them, please keep up with creating more contents like this. 🥰
Thanks for your kind words. Glad you're enjoying these videos!
Same. Really fun seeing these been broken down so simply and clearly.
I love the simplicity of the video. Helps us "non-finance guys understand the basics. Thanks
This guy is an absolute saviour. Dude you're doing amazing
Cheers mate!
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Hey James..
To be honest, I don’t know how you manage to do such a good job every single time. Very well done!
Thanks Anjum!
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It probably helps that it’s broken down piece by piece.
Absolutely brilliant. So clear and succinct. Thank you 🙏🏻 Great guy!
Thank you for your amazing videos! They are much easier to follow for me (I know nothing about accounting) than most other stuff on TH-cam on the subject!
This channel is exactly what i needed, very well put together videos and clear too. Thank you so much!
I'm glad you think so! Thank you
Just continue doing this, you're a great teacher! Thanks a lot!!!
Thanks Andreza, will do!
I am never able to pay attention to online classes and this video is my savior! Honestly if I do good in my exam tomorrow I'll buy u the whole world
Best of luck!! Hope it went well :)
This has been incredibly informative and helpful. Grateful for this channel, I will be viewing more videos as I do my best to catch up with my class.
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Please do a video on ratios derived from the financial statements! I'd like to know something about the most common ratios before we get to them in class. As always, great video! 🙌
Cheers for your suggestion Sam! I'm planning to cover it soon.
I've already watched all your videos literally🤟 Thanks for simplifying them❣ It means a lot for me as a accounting student. Hoping for your next video soon.
Cheers Chersea! I am away on holiday at the moment but have plenty more planned for the future. Good luck for this semester!!
Can i prepare an income statement for a business that is 6 months old
Really like the 'cost of goods' explanation being a variable cost and therefore its separation from the admin expenses. Penny dropped nicely for me on that. Its one of things that makes complete sense but only after a really good clear explanation. thank you!
Great to hear it's clicking for you :)
I am from Egypt and for the very first time in my life I understand accounting right thank you very much
Nice one!!
Hello, James! :) Great work with all the videos so far, a brilliant idea! :) They are very useful for beginners but also for people who want a refresher/recap, better explained than in many thick and boring books :)
Thanks Valentin, I'm glad you think so!
Recommended this channel to my classmates and they absolutely love you! We hope you consider doing a video on financial ratio analysis!
Thanks for sharing the channel Blein! I have plans to cover financial ratios at some point
James, you are the bomb, absolutely love your videos. Coming from an Accounting major, I really like how thorough you are when creating the videos, you are helping me soo much! If you wanna do a little video on formulas, I'd find that helpful as my book does not provide the details needed to keep all this information straight.
Much appreciation!!
Chelsea
I am so thankful I found your videos! THANK YOU, THANK YOU, THANK YOU! You explain everything so concise and clear. I've shed a few tears trying to learn the account basics.. my partner asked if I had turned to youtube for a little assistance. Voila, YOU! Yes! So helpful! I'm binge-watching your videos. No tears today!
Hey Nicole, glad you're finding these helpful! All the best with your studies :)
the content is a huge help in my review for my midterm! thanks mate!
No problem, good luck in your midterm!
Accounting Stuff Literally got 94%
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I enjoy your sense of humor and your simplified method of teaching. You make it simple.
Thanks, glad you're enjoying these :)
You are the only one who can explain accounting principles easier without being boring. Many thanks for making these videos
Cheers Lili!
Hell yeah, been waiting for this for a long time now🔥
Hope it was worth the wait!
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Your explanation is beyond perfect
thank you very much
Cheers Adeel!
Thanks, man for all these videos. Coming from an engineering background and starting my MBA now, I had no clue about accounting. Your videos are a saving grace to me and many others. Please keep up the good work and thank you once again. Stay safe and keep accounting :)
Thanks and best of luck with your MBA!!
Fantastic video! I really love the simple way you describe everything. The video editing and visuals are on point as well.
Cheers Cory!!
Omg, why can't professors make learning this easy lol. Love it man, very good!
Cheers, glad you enjoyed it!
Thanks! This video saved me.
Love the way you explain these vids.
No problem!
A clear breakdown of the income statement. I never knew there was soo many indirect expenses which is particularly useful for me because it helps me grasp some of the costs involved other then raw materials
Great to hear it helped!
Great vid. I just started as Accountant 1 this year. This was a great refresher. Thx and wish you well along your journey.
Thank you, prepared me for my accounting assessment today
Edit: back here cuz of my finals lol 🤡
No worries, best of luck with it :)
Seriously amazing stuff man. These videos are so well made and the quality really shows! Keep it up just sub'd
Thanks Phil! Great to have you on board :)
I want to thank you for making these videos, accounting in college is hard and im pretty sure its way harder in real life, but you make it easier. Thank you.
No worries, I'm happy to help!
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I wish i had Accounting Teachers like you during my college years. Thank you so much for these videos. GOD bless you.
Thanks Abdullah!
I'm new to your channel yet you have already contributed greatly to my study of this course. Thank you so much! You are a true hero for aspiring accountants ❤
Thanks Jasmin, good luck in your course!!
Thank you for uploading these videos. I’m self studying accounting and in preparation to go back to school four or five years down the road i’ve been watching and cross referencing all your videos as they have been incredibly helpful in clarifying and cementing many of the accounting topics found in many of the books and textbooks I’ve been using to study. I just wanted to leave words of encouragement. Your videos have really impacted me in my journey to better improve my life. Keep up the good work I really enjoy your videos! P.S what university accounting textbooks and subjects would you recommend for self study as I have quite a bit of time to prepare.
Hey mate, thanks for your comment. I appreciate the encouragement! Good on you for putting all of this effort into learning the subject. I hope it pays off for you! Hmm... I'm afraid there aren't really any textbooks that I can recommend at this stage. Only 'The Accounting Game' which I made a video about. If you discover any, please let me know
Thank you. I'm doing a basic finance module in my business degree and this had helped me massively to understand what's going on! :)
No worries Paige, I'm glad to hear the vid helped with your degree. All the best!
Im doing CPA. and the lectures from this page have been really helpful. The concepts are being simplified to such an extent its so easy to understand so neatly explained. Thank you so much ❤️
Cheers Mohammed and all the best with your CPA!
Dude you're the man. Absolute Legend as they say in your parts I believe.
Cheers! Haha
You're a legend. Thank you. Keep up the good work:)
Cheers Shontz, glad you enjoyed the vid!
I love how you teach. Thank you so much for putting these videos together.
Thanks for watching!
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thank you for all your videos especially this income statement video I listened to this video about 6 times a day for 1 week and I get 100% for my test thank you that whole mark is all because of you
Very informative and compheresible. Thank you for creating and sharing such a useful content 😊✊🔥🚀🚀
Glad it was helpful!
I'm taking an accounting course and your videos have been so helpful. Can you make a video on depreciation and contra asset accounts, having trouble wrapping my head around the text in the textbook. Need your perspective :D
Hey Brett! Thanks for your suggestions, I'll keep those topics in mind.
Thank you mate. It helps me a lot in my accounting class. Hoping for more videos often. Nice content!
Cheers Nelson! I am working on it but the videos take a long time to put together.
This really helped me as a beginner and i understand more of balance sheet, cash flow and i will see more videos from your channel. it really simplifies all this accounting principles for use to business. i appreciate lesson.
First off, I love your videos. The editing is top notch and the content is succinct. I have a question though. How did you make your intro? Did you purchase it? Thanks in advance.
Hi, can you make video on how to do the sales forecasting for start up business.. your explanation is the best.
Hey Sarah, thanks for your suggestion!
Man im soo glad i found this channel ....love from Pakistan ❤️❤️❤️❤️❤️❤️
Cheers Abdullah! All the best :)
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What a great video, you are really an awesome teacher. Your videos are interesting, captivating, clear and easy to understand (even for me whose first language is not english).
Thanks for sharing the video.
James, I found your videos super informative. Thanks a lot! Can you also do a video about different types of entities? And how the taxes work for each? :)
Cheers for your suggestions Erica, I'll keep those in mind!
thanks buddie
yes!!!!!!!
Thank You So Much!!!!!!!!!!!!!!!!!!
Thank You
No problem at all
Thanks so much. I hope you keep doing videos so that my life can keep being easy...much love from the Netherlands
Cheers, I don't plan on stopping any time soon!
Such a simple, comprehendible explanation. thanks.
Cheers Joseph!
Please create management accounting videos soon. I will be taking this class soon.
Yes plzz
Could you make a video on basis periods and overlap. Cheers mate
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Just wow!! You did a great job explaining this tricky topic. Thank you
No problem Rafael, hope it's making sense
Thank you so much for the videos. I haven’t a clue what the income statement was made and this explained those blanks to me really well. Amazing
Glad it's making sense! All the best :)
now i can do my activities without any confusion. idk why they add accounting in high school 🤧
Hey bro! Its been months. I need a favor bro!
Can you make a video on "Principles of Accounting" where all the principles are discussed.
BADLY NEED THIS!!
Your videos are extrmely helpful and well explained! Thank you so much!!!
Its very easy to understand a topic after watching these videos.
Thanks for your lectures
Glad it's making sense!
Can you please make a video on valuation of inventories... like FIFO LIFO etc.
Hey Khadeja, thanks for your suggestions, I would like to cover Inventory sometime soon!
@@AccountingStuff Also, it'd be amazing if you make a video on debentures and shares... as your videos are amazing
@@khadejakhan6708 Cheers, I'll keep those in mind too
@@AccountingStuff Can you please do a video on the Multi-step income statement with discontinued operations and the comprehensive income? Pleeaseee... Many thx!
@@paradaparada549 Thanks for your requests!
thanks man! This Is Daymond. My examinations are around the corner. AND I am a little confused on the subscription account so could you please make one explaining all the concepts? Daymond Mmopiemang.
Hey Daymond, thanks for your suggestion. When are your exams?
Great video!! Your videos give a lot of clarity to the concepts, easy to understand. Can you please make a video detailing on how to of the different parts of the COGS?
Your videos are very helpful for beginners in accounting. Awesome job!
Thanks!
It was information overload. I know income statement is simple. Keep it so the average Joe understands. U started tossing complex concepts. I became lost.
Thanks for your feedback!
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No worries, best of luck with your studies!
just learnt this chapter in my foundation year today and idk why im so lost but after watching your videos, ive understood it so much better alrdy thank u so so much!!!!🥰
Great to hear it's making sense!
I have to get up to speed on this accounting stuff. You're a great teacher. Thank you for sharing your knowledge!! I have subscribed and yes, I gave it a thumbs up, too! : )
Thanks Maria, I appreciate your support! All the best :)
his videos are so professional. Good job man!
Thanks, glad you enjoyed it :)
This is so good!! Thank you so much. God bless you more!! ❣️
Thanks, glad you enjoyed it!
i love how you edit. The video is clean and very well edited and thought through, love itz
Thanks, hope you found it useful!
Hi James! your channel is AMAZING! I'm a business finance analyst in a corporate environment with poor accounting background and I a literally watching all your videos, super useful, thanks!
I was wondering if you could do somthing on Cost Acccounting...or if you can indicate me a book/link/page/something where I can find easy and handy information about MOH, variances, Inventory and so on...I need to focus more on production side and short time to do that! many thanks and keep going!!!!!! cheers from Italy, Alice
soooo helpful!
I'm still so lost but this is getting me through passing this module!!
Good luck Jodie, you've got this!
Thanks a lot for this video! Explained it in a simple and effective way.
Cheers Caleb, glad you enjoyed it!
thank you so much!! you’re helping me to understand better!!!! keep up with the good work:))
No worries, glad to hear the vids are helping you
Hi James, your videos on Accounting basics can transform a full grow dummy into a Chartered Accountant. Great!
Cheers Imma! Sometimes we all need a refresh of the basics.
These videos are so useful. Cheers for making them
Cheers Sam! All the best :)
James , your teching is really amazing . love it alot!!❤️
Thanks Nelini, that's kind of you to say!
@@AccountingStuff thats me James. i really care ones who help me for path of success!
Great effort and content! Thanks!
Merci
Great Job, happy to see your channel grow.
Thanks mate!
Thank goodness for this, my current accounting teacher just reads off her ppt and won't explain anything! this saved me
That must make for some dry classes. Thanks, I'm happy the vid helped
Thank you so much for such an easy useful way, you make it easier for me.
That's great! Happy to hear that it's getting easier for you
Thank you so much !! You make accounting even more fun !!
No problem! Glad you enjoyed it :)