CourseHES 201

Week9 of 16

SemesterII

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This week’s topics

The income statement (profit and loss)

Layout of the statement
Gross profit and net profit

What you will be able to do

3.1 Prepare a simple Statement of Profit or Loss.

Activity

Prepare a simple income statement for a small shop.

Study materials

Further resources

Principles of Accounting Vol. 1, ch. 2.1: The financial statements · PDF · OpenStax (2019); income statement = profit and loss; pp. 54–66 · for registered students
Introduction to Business 2e, ch. 14.4–14.5: Balance sheet and income statement · PDF · OpenStax (2026), gross and net profit; pp. 484–489 · for registered students
Climate Change Related Risks and the Financial Statements of Small Businesses · Open-access article · Negash (2025), Small Business Institute Journal. Shows how items appear in the income statement and affect gross and net profit. · for registered students

Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.

Midterm Week 10

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Course plan

Week 1: Why businesses keep financial records
Week 2: Who uses accounts?
Week 3: Income, expenses and profit
Week 4: Assets, liabilities and capital
Week 5: The accounting equation
Week 6: Double entry: debits and credits
Week 7: Recording sales, purchases and cash
Midterm: Midterm evaluation
Week 9: The income statement (profit and loss)
Week 10: The balance sheet
Week 11: Profit is not the same as cash
Week 12: Cash flow forecasts
Week 13: Ratios: how profitable is the business?
Week 14: Ratios: can the business pay its bills?
Week 15: Review and coursework completion
Final: Final assessment and submission

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