The general and administrative section of the income statement shows the expenses that your company incurs that cannot be directly tied to the products and/or services you sell. The general and administrative section follows the gross revenue figure(s) in the income statement (gross revenue = gross sales – cost of sales).
Included in this section is almost every other expense your company has that is not found in the cost of sales section of the income statement. Advertising, salespersons and managers salaries and expenses, insurance, taxes, office staff, and office rent are all examples of expenses that are reported in the general and administrative section of the income statement.
The net profit follows the general and administrative expenses section of the income statement. The net profit is often what many call "The Bottom Line".
Comments