Word: Operating Statement
Definition:
An "operating statement" is a financial document that shows how a business performed over a specific period of time. It includes information about the income the business earned and the expenses it incurred. This helps people understand how well the business is doing.
Usage Instructions:
You can use the term "operating statement" when discussing finances, accounting, or business performance. It's common in business meetings, financial reports, or when talking to investors.
Example:
"The company's operating statement for the last quarter shows an increase in sales and a decrease in expenses, which is a positive sign for future growth."
Advanced Usage:
In more advanced financial discussions, an operating statement might also be referred to as an "income statement" or "profit and loss statement." It is important for stakeholders to review operating statements regularly to make informed business decisions.
Word Variants:
- Operating Income: This refers to the profit a company makes from its normal business operations, before deducting interest and taxes. - Operating Expenses: These are the costs associated with running the business, such as rent, salaries, and utilities.
Different Meanings:
In a broader sense, "operating" can refer to anything that involves functioning or working, while "statement" can refer to any declaration or report. However, together as "operating statement," it specifically pertains to financial results.
Synonyms:
- Income Statement - Profit and Loss Statement - Earnings Statement
Idioms and Phrasal Verbs:
While there aren't specific idioms or phrasal verbs that directly relate to "operating statement," you might hear phrases like "the bottom line," which refers to the final profit or loss shown in the operating statement.
Summary:
An operating statement is an important tool for understanding a business's financial health during a certain period.