Page 3 - FINAL CFA I SLIDES JUNE 2019 DAY 7
P. 3
Session Unit 7:
24. Understanding Income Statements, p.39
LOS 21.a: Describe the components of the Income Statement and alternative presentation
formats of that statement
p. 39 Less Returns/Allowances
= Net Revenue
tanties
p.40 Expenses Grouped by
Function (Activity); or (Also called Cost Of Sales Method)
Nature (Not Activity)
p.41) Considered an operating expense for
financial firms!
p. 40
Net I/Earnings = Revenues – ordinary expenses +
other income – other expense + gains – losses
Lets start with Revenues!
