Statement of Financial Performance
Principles of Accounts · Secondary 3 · Preparation of Financial Statements · 4.º Período

Statement of Financial Performance

Students learn to prepare the Statement of Financial Performance (Income Statement) for a trading business. They will calculate gross profit and profit for the year.

MOE Syllabus OutcomesMOE POA Syllabus Section 10.1: Income and ExpensesMOE POA Syllabus Section 10.2: Statement of Financial Performance

About This Topic

Students learn to prepare the Statement of Financial Performance (Income Statement) for a trading business. They will calculate gross profit and profit for the year.

Key Questions

  1. What are the components of a Statement of Financial Performance?
  2. How is gross profit calculated?
  3. What distinguishes operating expenses from other expenses?

More in Preparation of Financial Statements

Trial Balance

This topic focuses on the preparation of a trial balance to check the arithmetical accuracy of the ledger accounts. Students will understand the limitations of a trial balance.

2 methodologies

Statement of Financial Position

This topic covers the preparation of the Statement of Financial Position (Balance Sheet). Students will classify assets, liabilities, and equity appropriately.

2 methodologies

End of Financial Year Adjustments

Students apply the accrual basis of accounting to make end-of-year adjustments for prepayments and accruals. They will incorporate these adjustments into the financial statements.

2 methodologies