5.3 income statement Flashcards
1
Q
Final accounts
A
Financial records of a business
Produced end of accounting year
Gives details of profit/loss over year
give worth of business
2
Q
Managers use final accounts
A
- decision making (price, location, production)
- comparing business operations
~ cost saving factors (what to do to
save costs)
3
Q
Other companies use final accounts
A
Compare performance
- growth
- competition
4
Q
Who use final accounts
A
Managers
Other companies
Shareholders
Creditors
Governments
5
Q
Shareholders use final accounts to
A
see whether investments are getting profit
and if they are might invest more
6
Q
Creditors use final accounts
A
if they are getting money back
if they should loan money
7
Q
governments use final accounts
A
taxes
subsidies
8
Q
Income statement
A
Financial statement used to record and report the income, expenses, profit and loss
9
Q
Fixed cost is also called
A
Overhead cost
