4. Measuring & Reporting Financial Performance Flashcards
1
Q
What is an income statement?
A
Shows how a company has performed;
History book for the company
Lists income and expenses incurred over a period of time
2
Q
Gross Profit = ?
A
Sales - Cost of Sales
3
Q
Operating Profit = ?
A
Gross Profit - Operating Expenses
4
Q
Net Profit = ?
A
Operating Profit - Interest Tax
5
Q
What is the fate of the net profit/loss and where is this declared?
A
Transferred to equity to be declared in the statement of financial position
