Question

What are the affects of net income as a realized cost?

Answer 1

In any type of business that increases or decreases net income will impact retained earnings, if we can realized cost these are the item affect the net income that is including revenue, sales, cost of goods sold operating expenses, depreciation, and additional paid-in capital. If we need to find the net income or losses we can subtract total expenses from total revenue to determine your net income or a net loss. If your result is positive, you have net income. If it is negative, you have a net loss.

Revenue sales:-Revenue sales are the total amount of income generated by the sale of goods or services related to the company's primary operations.

Cost of goods sold:-is the cost of manufacturing the products that a company sells during a period, so the only costs included in the measure are those that are directly tied to the production of the products, including the cost of labor, materials, and manufacturing overhead.

Operating expenses :-are expenses a business incurs in order to keep it running, such as staff wages and office supplies.

Depreciation: Is the monetary value of an asset decreases over time due to use, wear, and tear, or obsolescence.

additional Paid-In Capital:- is the value of share capital above its stated par value and is an accounting item under Shareholders' Equity on the balance sheet. APIC can be created whenever a company issues new shares and can be reduced when a company repurchases its shares.