Project 2

Project 2: Financial Statements

Training Room Summary

All businesses need to make money to be successful and grow. In order to be assured that any expenditures being made are not exceeding revenue, people who run businesses need to be aware of the total expenses, total revenue, and the difference between the two for a fiscal period. That difference will be a net income, if positive, or a net loss, if negative. The formal statement used to record this information is called an income statement. This is one of the three financial statements you are going to prepare for this project using information from the worksheet.

Now that you have practised preparing income statements, continue on to Training Room 2 to prepare the end of the fiscal period balance sheet, the second financial statement in this project.