Course Content
New Accounting Model (Exam-2009)
Books references: 1. Account Code (Volume III). 2. Chart of Accounts (Issued by CGA). 3. Manual Accounting Principles. 4. Accounting Policies and Procedures Manual.
Private: DAO Part-I Examination 2024 (Fresh Candidates) Past Papers
About Lesson
What is the difference between a balance sheet, an income statement and a cash flow statement?
  1. Balance Sheet:

  2. Income Statement (Profit and Loss Statement):

    • Purpose:
      • Shows a company’s financial performance over a specific period (e.g., a month, quarter, or year).
      • Focuses on revenue, costs, and expenses.
    • Components:
      • Revenue (Sales): Income generated from selling goods or services.
      • Cost of Goods Sold (COGS): Direct costs related to producing goods or services.
      • Gross Profit: Revenue minus COGS.
      • Operating Expenses: Include selling, administrative, and other costs.
      • Net Income (Profit): Final result after deducting all expenses from revenue.
    • Example: J.C. Penney’s income statement shows revenue, cost of goods sold, operating expenses, and net income for a specific period 2.
  3. Cash Flow Statement:


  • Balance Sheet: Snapshot of a company’s financial position (assets, liabilities, equity) at a point in time.
  • Income Statement: Summary of revenue, expenses, and profit over a specific period.
  • Cash Flow Statement: Summary of cash inflows and outflows over a specific period.
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