{"id":222,"date":"2024-09-06T16:47:38","date_gmt":"2024-09-06T16:47:38","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-financial-statement-presentation-2\/"},"modified":"2024-09-06T16:47:38","modified_gmt":"2024-09-06T16:47:38","slug":"introduction-to-financial-statement-presentation-2","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-financial-statement-presentation-2\/","title":{"raw":"Introduction to Financial Statement Presentation","rendered":"Introduction to Financial Statement Presentation"},"content":{"raw":"\n<h2>What you\u2019ll learn to do: Demonstrate proper financial statement presentation of inventory and cost of goods sold<\/h2>\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30192153\/people-2590685_1920.jpg\"><img class=\"aligncenter size-medium wp-image-4686\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30192153\/people-2590685_1920-300x225.jpg\" alt=\"An employee at a cash register.\" width=\"300\" height=\"225\"><\/a>\n\nSo far, you\u2019ve discovered that the single seemingly simple item called Inventory on the balance sheet can be quite complicated. In this section, you\u2019ll learn how to present COGS on a multi-step income statement that shows the sub-total of gross profit (also called gross margin) and operating income, and how inventory errors can affect the bottom line, as well as the required disclosures related to inventory.\n","rendered":"<h2>What you\u2019ll learn to do: Demonstrate proper financial statement presentation of inventory and cost of goods sold<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30192153\/people-2590685_1920.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-4686\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30192153\/people-2590685_1920-300x225.jpg\" alt=\"An employee at a cash register.\" width=\"300\" height=\"225\" \/><\/a><\/p>\n<p>So far, you\u2019ve discovered that the single seemingly simple item called Inventory on the balance sheet can be quite complicated. In this section, you\u2019ll learn how to present COGS on a multi-step income statement that shows the sub-total of gross profit (also called gross margin) and operating income, and how inventory errors can affect the bottom line, as well as the required disclosures related to inventory.<\/p>\n","protected":false},"author":6,"menu_order":16,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Financial Statement Presentation\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"\",\"author\":\"StockSnap\",\"organization\":\"\",\"url\":\"https:\/\/pixabay.com\/photos\/people-man-counter-cashier-2590685\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"https:\/\/pixabay.com\/service\/terms\/#license\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":206,"module-header":"","content_attributions":[{"type":"original","description":"Introduction to Financial Statement Presentation","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""},{"type":"cc","description":"","author":"StockSnap","organization":"","url":"https:\/\/pixabay.com\/photos\/people-man-counter-cashier-2590685\/","project":"","license":"cc0","license_terms":"https:\/\/pixabay.com\/service\/terms\/#license"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/222"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":0,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/222\/revisions"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/206"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/222\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=222"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=222"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=222"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}