F1 Statemt Of Comprehensive Income Flashcards
What is a statement of comprehensive income?
Calculates whether the firm has made a profit or a loss
How does a statement of comprehensive income calculate profit or loss?
By deducting all expenses from sales revenue
What is the purpose and use of a statement of comprehensive income?
If produced correctly,will give an accurate calculation showing how much profit or loss the business has made
What are the 3 components to the 3 parts of SCI?
- Sales revenue
- Cost of goods sold
- Gross profit
What is sales revenue?
The money coming into the business from providing a trade
E.g. selling goods, manufacturing goods, or providing a service
What is the formula for sales revenue?
Quantity sold X selling price
What is cost of goods sold?
Costs directly linked to providing that trade, a simple calculation to ensure that you are working out what had been sold not just all materials purchased
What is the calculation for cost of goods sold?
Opening inventories + purchase - closing inventories
What is gross profit?
The amount of money left or the surplus after the cost of goods sold has been deducted from the sales turnover
What is the calculation for gross profit?
Sales revenue - cost of goods sold
What is profit or loss for the year?
Money after all other expenses have been deducted from gross profit and any other revenue income has been added
What is the calculations for profit or loss for the year?
Gross profit - expenses + other revenue income
