When Paul was looking at his business startup costs, he forecast some ongoing expenses for the first three months which were his monthly telephone and internet expenses. He also had one-off costs to assist in setting up his business. Additional expenses such as bank charges, freight costs for delivery to his customers, an update on his website and some office supply costs were incurred by Paul during the three months. He can now record these expenses in his income statement.
Paul has completed the expenses section of his income statement, displaying it in a month by month format.
Explore this link to gain further knowledge of definitions in an ‘income statement’ using Paul’s expenses as an example.
Alternatively there is a PDF version of the activity answers in the Downloads area.
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