I still remember sitting with a friend who had just started a small manufacturing business. He opened his laptop and showed me a bunch of numbers from his first-year report. Sales… expenses… depreciation… inventory… everything mixed up like a rainbow after rain. He asked, “Yaar, can you explain what all these things actually mean? The report says the following data were reported by a corporation, but I barely understand half of it.”
That line stuck with me.
So if you’ve ever stared at financial data with the same confused expression, this guide is for you. I’ll walk you through what “the following data were reported by a corporation” usually includes, why it matters, and how real companies use this information to survive, grow, and stay out of trouble.
What People Actually Mean When They Say “The Following Data Were Reported by a Corporation”
Sometimes a report throws this line before listing values, like:
- Revenue
- Net income
- Dividends
- Depreciation
- Retained earnings
- Assets
- Liabilities
Basically, it’s just a fancy way of saying, “Here’s the important financial stuff the company officially reported.” But the phrase the following data were reported by a corporation shows up a lot in textbook problems, case studies, and real business reports—almost like a default opener to present financial information.
Why These Corporate Numbers Even Matter
Let’s be honest. Most of us don’t look at numbers for fun. But these figures are the backbone of decision-making.
Investors look at them to see if the company is healthy.
Management uses them to fix problems.
Banks study them before giving loans.
Even small business owners use similar data to check if they’re on the right track.
Whenever the following data were reported by a corporation, it means the report is giving you clues about:
- how much money came in,
- how much went out,
- and what’s left at the end of the day.
That’s basically business survival.
Common Items Included When “The Following Data Were Reported by a Corporation”
Let’s break down the usual things you’ll see under this phrase.
1. Revenue (Sales)
This is the total money earned by selling goods or services.
If a corporation reports ₹5,00,00,000 in revenue, it doesn’t mean they earned that much profit—just that this amount came in.
2. Expenses
When you see the following data were reported by a corporation, expenses almost always follow revenue. These include:
- salaries
- rent
- electricity
- marketing
- raw materials
- insurance
Expenses tell you how much it actually cost the business to operate.
3. Net Income or Loss
This one’s simple:
Net income = Revenue – Expenses
When it’s positive, life feels great.
When it’s negative, well… management starts sweating.
4. Dividends
If the business earned profit and decides to share some of it with shareholders, that amount is dividend.
5. Assets
Everything the company owns.
Cash, machinery, land, computers, inventory—basically anything valuable.
6. Liabilities
Everything the company owes.
Loans, bills, accounts payable, bank overdrafts, etc.
7. Retained Earnings
This is the profit the company keeps instead of distributing as dividends.
You’ll often see these items listed after the phrase the following data were reported by a corporation because they give a quick financial overview without long explanations.
A Realistic Example: What a Corporate Report Might Look Like
Picture a mid-sized electronics company: BlueLine Devices Pvt. Ltd. They manufacture budget smartphones.
Here’s a short version of what their yearly data might look like:
The following data were reported by a corporation (BlueLine Devices):
- Revenue: ₹12 crore
- Cost of Goods Sold (COGS): ₹7 crore
- Operating Expenses: ₹2 crore
- Depreciation: ₹40 lakh
- Interest Expense: ₹10 lakh
- Taxes: ₹30 lakh
- Dividends Paid: ₹20 lakh
- Assets: ₹15 crore
- Liabilities: ₹6 crore
Now let’s interpret what this means in a real-world way…
Revenue – COGS
The company earned ₹12 crore but spent ₹7 crore making the smartphones.
Gross Profit = ₹5 crore
Subtract Operating Expenses
₹5 crore – ₹2 crore = ₹3 crore (operating profit)
Subtract Depreciation & Interest
₹3 crore – ₹40 lakh – ₹10 lakh = ₹2.5 crore (profit before taxes)
After Taxes
₹2.5 crore – ₹30 lakh = ₹2.2 crore (net profit)
After Dividends
Out of ₹2.2 crore, the company paid ₹20 lakh in dividends.
Retained Earnings = ₹2 crore
This is how companies use the numbers when the following data were reported by a corporation is mentioned. It’s not just numbers—it’s the story of how money traveled through the business.
Learning to Read Corporate Data Without Feeling Lost
When you’re handed a problem or report saying the following data were reported by a corporation, your brain might freeze for a second. That’s normal.
The trick is to understand what each number represents, not memorize formulas.
Here’s a simple cheat list I keep mentally:
- Revenue means “money in.”
- Expenses mean “money out.”
- Assets mean “what the company owns.”
- Liabilities mean “what the company owes.”
- Net profit means “what’s left after everyone gets paid.”
- Retained earnings mean “profit the company saved.”
Once you see it like that, the numbers stop being intimidating and start becoming logical.
Where You See This Phrase in Exams, Books, and Real Reporting
1. Accounting textbooks
This phrase is extremely common in financial accounting problems. Something like:
“The following data were reported by a corporation. Prepare the income statement.”
2. Case studies
Management studies also use this line before showing financial scenarios.
3. Real corporate annual reports
Even though real companies may phrase it differently, the meaning is the same—they present an official list of financial data.
If you want to see how big companies present their data, check out:
These two are great examples of clean, transparent corporate reporting.
How Students Can Handle Accounting Problems Based on “The Following Data Were Reported by a Corporation”
If you’re preparing for exams, this phrase will show up countless times. A quick approach:
Step 1 — Identify what’s being asked
Income statement? Balance sheet? Retained earnings? Cash flow?
Step 2 — Categorize the data
Group every number into:
- revenue
- expense
- asset
- liability
- equity
Step 3 — Use the right formulas
Once everything’s sorted, the question becomes very easy.
Step 4 — Look for tricky items
Sometimes depreciation, interest, or prepaid expenses confuse students.
But once you know where they belong, the whole question feels like a puzzle that suddenly makes sense.
Handling the phrase the following data were reported by a corporation becomes effortless with practice.
Mistakes People Make While Reading Corporate Data
I’ve seen even experienced managers mess up here.
A few common slip-ups:
Missing indirect costs
People often only look at raw material cost and forget labor, utilities, and hidden expenses.
Confusing liabilities with expenses
A loan installment isn’t the same as rent or electricity. Liabilities affect the balance sheet, expenses affect the income statement.
Ignoring depreciation
Even though it’s a non-cash item, it affects profit.
Thinking profit equals cash
Never. Cash flow is a whole different world.
One reason reports always say the following data were reported by a corporation is to present everything clearly so these mistakes don’t happen.
Final Thoughts
I’ve always felt that business numbers tell stories. When the following data were reported by a corporation, those numbers aren’t just cold figures—they show decisions, struggles, wins, and sometimes failures. Once you learn how to read them, you understand the heartbeat of the company.
If you’re a student, a small business owner, or someone curious about how companies track their money, this phrase will keep popping up. And now that you know what usually comes after it, you’ll read financial reports with a lot more confidence.
FAQs (Human-Written & Beginner Friendly)
1. What does the phrase “the following data were reported by a corporation” mean?
It simply means the company has officially released a list of financial numbers like revenue, profit, expenses, assets, etc. It’s an introduction to financial data.
2. Why do textbooks use this phrase so often?
Because it’s a quick way to present realistic corporate data for solving accounting questions.
3. Is this phrase used in real companies too?
Yes, although the wording may differ. Annual reports also list financial numbers in a similar way.
4. What can I do with the data reported by a corporation?
You can prepare income statements, calculate profit, check financial health, and understand how the business performed.
5. What’s the easiest way to understand corporate data?
Think of it like a household budget with money coming in, going out, and what’s left at the end. The concept is the same—just bigger numbers.
