Accounting 101: Parts of an Income Statement

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A few of the videos I will post here are what I like to call “Accounting 101.” They have some basic accounting information for those who need a bit of a primer on how the accounting process works.

This video focuses on the parts of an income statement. I talk about the main sections of the income statement, also often referred to as the profit and loss statement (P&L). Things you’ll see on the P&L include cost of goods sold, gross profit, operating expenses, operating income ,non-operating income and expenses, and net income. At the end of the video you’ll see a sample income statement, so hit pause and go to full screen mode to get a good look at it.