Closing Entries Flashcards
1
Q
What goes on the income statement?
A
Sales Revenue-Cogs=Gross Profit-Salary and Rent Expense=Operating Income-Interest Expense-Loss on Sale of Equipment=Net Income Before Taxes-Income Taxes=Net Income
2
Q
Statement of Retained Earnings
A
Beginning of Year RE+Net Income-Dividends=End of Year RE
3
Q
Stages of Income Statement
A
- Gross Profit 2. Operating Income 3. Net Income w/o Tax 4.Net Income
4
Q
What gets us Gross Profit
A
Sales Revenue-Cogs
5
Q
What gets us Operating Income?
A
Gross Profit-Salary and Rent Expense
6
Q
What gets us Net Income w/o Taxes
A
Operating Income-Interest Expense-Loss on Sale Eqipment
7
Q
What gets us Net Income
A
Net Income w/o Tax-Tax
