What is bottom line in accounting?
The bottom line is a company’s net income, or the “bottom” figure on a company’s income statement. More specifically, the bottom line is a company’s income after all expenses have been deducted from revenues. A company’s bottom line can also be referred to as net earnings or net profits.
What are the line items in accounting?
Typical line items included in the balance sheet (by general category) are: Assets: Cash, marketable securities, prepaid expenses, accounts receivable, inventory, and fixed assets. Liabilities: Accounts payable, accrued liabilities, customer prepayments, taxes payable, short-term debt, and long-term debt.
What are the below the line items?
Below the line refers to line items in the income statement that do not directly impact a firm’s reported profits. A firm may classify certain expenditures as being capital expenditures, thereby pushing them below the line by shifting them from the income statement to the balance sheet.
What is another word for bottom line?
In this page you can discover 31 synonyms, antonyms, idiomatic expressions, and related words for bottom line, like: final decision, the-bottom-line, main idea, RightNow, net income, point, last-word, crux, conclusion, fundamentals and essence.
What is another name for the bottom line?
What is another word for bottom line?
What is below the line costs?
Above-the-line costs include all costs above the gross profit, while below-the-line costs include costs below gross profit. Above-the-line costs are often referred to as the cost of goods sold (COGS), while below-the-line is operating and interest expenses and taxes. This definition mostly relates to manufacturers.
Is depreciation below the line?
As stated earlier, in most cases, depreciation and amortization are treated as separate line items on the income statement. Depreciation is typically used with fixed assets or tangible assets, such as property, plant, and equipment (PP&E).
What are below-the-line costs?
Why is it called below-the-line?
The “line” in “below-the-line” refers to the separation of production costs between script and story writers, producers, directors, actors, and casting (“above the-line”) and the rest of the crew, or production team.
What is quadruple bottom line?
We can define the quadruple bottom line as a framework to evaluate performance across 4 pillars: cultural, economic, environmental and social. It is an extension of the triple bottom line accounting framework, which provided a balance of people, planet and profit needs, to encompass cultural needs.
What does bottom line mean in accounting?
bottom line an accounting term denoting the NET PROFIT from a business operation after all costs have been paid. In financial accounting terms, profit would be sales revenue less all the costs of production, marketing, finance, etc., and frequently after taxation charges for the period.
Does the bottom line carry over from one accounting period to another?
The bottom line, or net income, of a company, does not carry over from one accounting period to the next on the income statement. Accounting entries are performed to close all temporary accounts, including all revenue and expense accounts, at the end of the period.
What is the bottom line number of a company?
After accounting for these costs (including taxes, interest on debt, and various accounting-driven numbers including depreciation and amortization) the company arrives at a bottom line number. It is either the net profit or net loss number.
What happens to the bottom line on the income statement?
What Happens to the Bottom Line. The bottom line of a company does not carry over from one period to the next on the income statement. Accounting entries are performed to close all temporary accounts including all revenue and expense accounts.