Chapter 21 - Income Statements Flashcards
1
Q
Gross Profit
A
The difference between revenue and cost of sales
2
Q
Profit
A
The difference between gross profit and total costs (expenses)
3
Q
Total Cost
A
Cost of sales + expenses
OR
Fixed costs + variable costs
4
Q
Revenue
A
The amount earned from the sale of products
5
Q
Cost of Sales
A
The cost of purchasing the goods used to make the products sold
6
Q
Expenses
A
The day-to-day operating expenses of a business
7
Q
Income Statement
A
A financial statement which records the revenue, costs and profits of a business for a given period of time
