Income Statement from Trial Balance

Activity Description

In this worksheet, students will help Alex’s Auto Detailing business assess its financial performance over a given period. Students are provided with a trial balance containing random transaction amounts for various revenue and expense accounts. Using this information, their task is to create an income statement and determine if the business was profitable during the period.

What Students Will Do:

• Analyze the trial balance, which includes all revenue and expense accounts.
• Use the data to build an accurate income statement, summarizing revenues, expenses, and determining net profit or loss.
• Identify whether Alex’s Auto Detailing business was profitable during the specified period.

Learning Objectives:

• Gain practical experience in creating an income statement from a trial balance.
• Understand how to calculate and interpret net profit or loss.
• Develop critical financial analysis skills by evaluating business performance.

Key Features:

• Randomized Data: Each student receives a unique set of transaction amounts from the trial balance, ensuring independent work and preventing copying.
• Auto-Grading: The worksheet is automatically graded, providing instant feedback on the accuracy of the income statement.

This activity provides students with hands-on practice in using financial data to assess a business's profitability, an essential skill in accounting and financial management. The randomization and auto-grading ensure a personalized and effective learning experience.

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