The INCOME STATEMENT Explained (Profit & Loss / P&L)

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.

⏱️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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#accounting #accountant #accountingstuff

[AccountingStuff]

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

[gerryendersen]

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

[niloykarmaker]

Thanks

The Way You Give Priorities to Your Regular Audience!!
Winning Hearts Bro!!!

[NutirtionCat]

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!!

[dgupta]

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 !☺

[DaveCordova]

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!

[TheHamontree]

Thanks so much for this. I understand it better when you explain it than my lecturer 😂

[chimakwaprettyboy]

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 🤗🤞🏼

[aam]

Thank you so much! I'm completely new to accounting and you've made it easier for me to understand, may God bless you!

[princevarghese]

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.

[collinssunshine]

This guy is a teacher...not every lecturer can teach..most of them just complicate your life by making accounts look even more difficult

[mrfox]

I am from Egypt and for the very first time in my life I understand accounting right thank you very much

[annizhao]

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!!

[mmiah]

This guy is an absolute saviour. Dude you're doing amazing

[anjumabdulazyz]

Hey James..
To be honest, I don’t know how you manage to do such a good job every single time. Very well done!

[Kriszti]

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. 🥰

[alohamilkyway]

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!

[SamYoumansSRY]

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! 🙌

[fusagasugena]

You are the only one who can explain accounting principles easier without being boring. Many thanks for making these videos

[suleimanshaik]

I love the simplicity of the video. Helps us "non-finance guys understand the basics. Thanks