FS1. Income Statements (Profit & Loss Accounts) Explained – Reading them to improve results

Self-paced, whenever and wherever you like

To drive results, business managers, business proprietors and company directors must manage revenues and costs meaning they must understand the Income Statement (Profit & Loss Account).

Using clear, colourful diagrams and by translating jargon into plain English, this course explains how to read and use Income Statements, including:

  • What Income Statements are, very simply
  • The different levels of profit and when each is important
  • Different types of cost and how these differences help you manage the business.  
  • Why there’s no GST or VAT in revenues or costs 
  • What depreciation really is (dispelling a common myth), why it’s different from other costs and what’s different about amortisation 
  • Why tax expense isn’t the same as tax paid.  
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This approximately two-hour course, which includes several quizzes, explains how to read and interpret Income Statements in plain English. You can make notes on the accompanying booklet and there’s a Glossary of Terms for easy reference afterwards. You also get a certificate when you’ve completed the course. No prior knowledge is necessary but everyone except experts will learn from the course.

Learning outcomes:

  • Being able to read and interpret Income Statements (Profit & Loss Accounts)
  • Being confident in participating in discussions about your Income Statement and in asking searching questions of accountants and understanding their answers
  • Understanding the impact of your decisions on revenues and costs 
  • Being able to hold others to account for their decisions, revenues and costs
  • Knowing which revenues and costs to worry about
  • Understanding the importance of categorising costs appropriately
  • Making better financial and business decisions.
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