When Revenue Equals Expenses

The spreadsheet shows the monthly revenue and expenses for a new business use the models to predictt the month in which revenue will equal expense.

When revenue equals expenses. Net income plus operating expenses equals gross profit or total revenue. The revenue number is the income a company generates before any expenses are taken out. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi. Expenses are expenditures often monthly that allow a company to operate.

This is all i v come up with and am not sure which one is the right answer or. In reality this concept is just as simple as the basic equation. To calculate net income accountants subtract total expenses from total revenues. Assets are still assets and liabilities are still just liabilities.

Examples of expenses are office supplies utilities rent entertainment and travel. Expenses are only allowed to the extent that they would be allowed for that. Month revenue expenses jan 4000 22 000 feb 9000 24 000 mar 13 000 25 000 apr 16 000 27 000 may 21 000 30 000 would someone please help and explain how to figure this out. The receipt of rent is treated as the carrying on of a trade.

You may partly let a premises. Assets liabilities revenue expenses dividends. After the entries through december 3 have been recorded the balance sheet will look like this. Copyright 2020 this site was created by f iz.

Revenues and expenses appear on the income statement as shown below. You can only claim the portion of the expenses related to the part of the property that is let. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. Are your income and expenses actually equal.

Notice that the year to date net income bottom line of the income statement increased stockholders equity by the same amount 180.