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Learn & Earn/Reading Financial Statements

Chapter 1 – Understanding the Income Statement

Chapter 1 of 3

1Chapter 1 – Understanding the Income Statement

Learning Objectives

After completing this chapter, you will be able to:

  • Understand what an Income Statement is.
  • Learn the difference between revenue, expenses, and net profit.
  • Understand what Earnings Per Share (EPS) means.
  • Learn why profit margins are important.
  • Read and interpret a simple Income Statement.
  • Understand how investors use Income Statements when researching ASX companies.

Test your knowledge

4 practice questions — click any question to expand and answer.