Chapter 3: Measuring And Reporting Financial Performance Flashcards
1
Q
Identify the three main Financial Statements
A
Balance Statement
Income Statement
Cashflow Statement
2
Q
Define Gross Profit
A
Sales revenue - cost of sale
3
Q
What is the operating profit
A
The gross profit - operating expenses (overheads).
4
Q
What is the profit for the period?
A
The final profit line on the income statement, also referred to as net profit.
Operating profit + any non-operating income - any interst payable on borrowings.
5
Q
How is the cost of sales calculated?
A
Goods available for resale - closing inventories
6
Q
Define the term prepaid/accrued expenses?
A
prepaid/accrued expenses are the expenses gained from a financial period, these expenses will be represented on the statement of financial position at the end of the companies financial year
