Statement of Comprehensive Income Expenses – are decrease in the economic

benefits of the entity during the accounting

A. Service Business period which is the result of depletions or
1. Service Income outflow of assets or incurrences of liabilities
2. Operating Expenses that cause equity to decrease.
B. Merchandising Business
1. Sales A. Service Business
2. Contra Sales A service is a type of business that
3. Purchases mainly provides services directly to
4. Contra Purchase Accounts consumers or other businesses.
5. Cost of Goods Sold 1. Service Income - are revenue
6. General Administrative and Selling earned from a service business. It is
Expenses a term used to describe the income
from a service business.
2. Operating Expenses – is a set of
Statement of Comprehensive Income (SOCI) expenses that arise in the normal
course or operation of the business.
Is the first report prepared in the Financial
B. Merchandising Business
Statements.
- Is a type of business that resells
goods to customers at a price
higher than its original price. The
Is usually prepared first among other reports purpose of reselling the goods, also
when preparing FS. It is also known as the termed as merchandise , is to earn
Income Statement, Statement of Profit or Loss, profits.
P&I, Statement of Income, and Statement of
Operations. Format of FS

SOCI contains nominal accounts. Nominal

Accounts are income statement accounts
because they are found in an Income
Statement.

Income – is the increase in the economic

benefits of the entity that may be a result of
enhancement or inflow of asset or such
decrease in the liability that cause equity to
increase.

Income Includes:

1. Revenues –are income earned in the

course of ordinary activities of business.
2. Gains –are income earned from
activities other than the normal
activities of the business. Such are gain
on sale of equipment, gain on sale of
short term investments, and other
gains.