{"id":189,"date":"2021-02-15T06:40:48","date_gmt":"2021-02-15T06:40:48","guid":{"rendered":"http:\/\/www.dissertationwritingace.co.uk\/blog\/?p=189"},"modified":"2021-02-15T06:40:51","modified_gmt":"2021-02-15T06:40:51","slug":"understanding-the-income-statement-dissertation-help-uk","status":"publish","type":"post","link":"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/","title":{"rendered":"Understanding The Income Statement: Dissertation Help UK"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Writing a dissertation for finance is one of the most difficult tasks for the students as a dissertation itself is detailed writing which demands a lot of effort and commitment of students to complete the task. Students have to complete their research at the end of the program where they have to complete their dissertation based on the provided guidelines by the teachers. It is essential for the students to conduct research on the basis of the selected specialisation they had selected at the beginning of the program.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of the program, students get many opportunities to start their desired job and to step into professional life. Academics along with professional life creates a tough schedule for the students as they have to see both activities at the same time. Students can also approach <strong><a href=\"https:\/\/www.dissertationwritingace.co.uk\/\">online dissertation writing services<\/a><\/strong> to complete their research as for the requirements and the standards while meeting the deadlines at the same time.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#What_Is_Income_Statement\" >What Is Income Statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Dealings_of_Income_Statement\" >Dealings of Income Statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Revenues\" >Revenues<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Operating_Revenues\" >Operating Revenues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Non-Operating_Revenues\" >Non-Operating Revenues<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Expenses_and_Losses\" >Expenses and Losses<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Primary_Activity_Expenses\" >Primary Activity Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Secondary_Activity_Expenses\" >Secondary Activity Expenses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Structure_and_Sample_of_Income_Statement\" >Structure and Sample of Income Statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#What_Are_the_Uses_of_Income_Statement\" >What Are the Uses of Income Statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.dissertationwritingace.co.uk\/blog\/understanding-the-income-statement-dissertation-help-uk\/#Conclusion\" >Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Income_Statement\"><\/span>What Is Income Statement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The income statement is one of the financial statements that are involved to define the financial standing of the organisation at a specific time period. Balance sheet cash flow along with the income statement helps your organisation to understand the financial position of the company. The income statement is also known as the statement of profit and loss or a statement of revenue and expenses. The prime objective of the income statement is to state the revenues and expenses of the organisation during a particular time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dealings_of_Income_Statement\"><\/span>Dealings of Income Statement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Income statement deals with the four important items that are expenses, revenues, gains, and losses. The income statement doesn&#8217;t differentiate between the cash or non-cash items. The very starting point of the income statement comes from the details of sales which help to compute the income of the organisation known as the net revenue. Let&#8217;s see in detail revenues and gains along with the expenses and losses throughout the process of the income statement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revenues\"><\/span>Revenues<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The following are the types of revenues covered in the income statement;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating_Revenues\"><\/span>Operating Revenues<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Operating revenues come from the primary activities of the organisation. These primary activities are entirely dependent on the nature of the organisation or business. If the nature of business is all about the sale of the product, then sales are the primary activities of the firm, and so if they are manufacturers of the products. These revenues are earned in exchange for the services of selling the required product.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-Operating_Revenues\"><\/span>Non-Operating Revenues<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-operating revenues are considered as the revenues generated through the non-operational activities of the organisation. In simple words, they involve the non-core operations of the business. These sources of income can be through other factors rather than the primary activities. This may include interest from the fixed deposits of the organisation bank account or rental income through the land of business. It can be an income by providing certain advertisements through your business property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expenses_and_Losses\"><\/span>Expenses and Losses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">They are considered as the cost of the business to run their operations. They are further divided into two categories primary activity expenses and secondary activity expenses. Let&#8217;s see one of them in detail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Primary_Activity_Expenses\"><\/span>Primary Activity Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Primary activity expenses are considered as expenses which are incurred to earn the operating revenue from the business or an organisation. Primary activity expenses include administrative and general expenses along with the cost of goods sold depreciation, amortization, and many others. The primary activity expenses are sales, commissions, expenses for utility, salaries, transportation, and many other things.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Secondary_Activity_Expenses\"><\/span>Secondary Activity Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Secondary activity expenses are all about the non-core activities of the business or an organisation, such as interest payable for the loans.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_and_Sample_of_Income_Statement\"><\/span>Structure and Sample of Income Statement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s see a sample of the income statement for the best understanding of the structure and the procedure throughout the writing.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><\/td><td><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019<\/strong><\/td><td><\/td><td><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2018<\/strong><\/td><\/tr><tr><td><\/td><td><\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><td>&nbsp;<\/td><\/tr><tr><td>Gross turnover<\/td><td><\/td><td>&nbsp;&nbsp; 8,149,662,345<\/td><td><\/td><td>&nbsp;&nbsp; 8,145,370,198<\/td><\/tr><tr><td>Sales returns<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39,628,778<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35,101,278<\/td><\/tr><tr><td>Sales tax<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,915,811<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,254,976<\/td><\/tr><tr><td>Discounts<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,241,205<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,694,134<\/td><\/tr><tr><td><\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (51,785,794)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (46,050,388)<\/td><\/tr><tr><td><\/td><td><\/td><td>&nbsp;&nbsp; 8,097,876,551<\/td><td><\/td><td>&nbsp;&nbsp; 8,099,319,810<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><tr><td>Cost of goods sold<\/td><td><\/td><td>&nbsp; (7,598,174,304)<\/td><td><\/td><td>&nbsp; (7,634,695,886)<\/td><\/tr><tr><td><strong>Gross profit<\/strong><\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 499,702,247<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 464,623,924<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><tr><td>Distribution expenses<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp; (343,668,990)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp; (330,646,193)<\/td><\/tr><tr><td>Administrative expenses<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp; (150,134,640)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp; (126,590,890)<\/td><\/tr><tr><td>Other operating expenses<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,713,990)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6,191,152)<\/td><\/tr><tr><td>Other income<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67,652,131<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66,327,727<\/td><\/tr><tr><td><strong>Operating profit<\/strong><\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71,836,758<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67,523,416<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><tr><td>Finance cost<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4,564,551)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4,355,098)<\/td><\/tr><tr><td><strong>Profit before taxation<\/strong><\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67,272,207<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63,168,318<\/td><\/tr><tr><td><\/td><td><\/td><td><\/td><td><\/td><td><\/td><\/tr><tr><td>Taxation<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26,470,777)<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25,353,378)<\/td><\/tr><tr><td><strong>Profit after taxation<\/strong><\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40,801,430<\/td><td><\/td><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,814,940<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the structure of the income statement can help students to grasp the concepts effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Uses_of_Income_Statement\"><\/span>What Are the Uses of Income Statement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main objectives of the income statement is to provide the details of activities and profitability of the company to the stakeholders while on the other hand it also provides internal Insight of the organisation so that managers can match different businesses and different sectors within the organisation.&nbsp; there are many cases with the organisation, where this statement is required for the internal use of organisation.&nbsp;this helps the top management to understand the deeper insights of various operations and progress throughout the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the uses of the income statement is that it is helpful for the top management to make decisions effectively and efficiently.&nbsp;without evaluating income statement along with other financial statements, it is impossible for the top management to make decisions significantly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Income statement is the most effective and important part of the financial statement that helps the organisation to see and evaluate the financial standings from both internal and external points of view.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Writing a dissertation for finance is one of the most difficult tasks for the students as a dissertation itself is&hellip;<\/p>\n","protected":false},"author":1,"featured_media":190,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dissertation-help"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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