financial statements:statement of comprehensive income

Question 1

amortisation

Answer 1

the writing off of an intangible asset

Question 2

cost of sales

Answer 2

the direct costs of a business

Question 3

gross profit

Answer 3

the difference between revenue/turnover and cost of sales

Question 4

exceptional costs

Answer 4

a one off cost such as a large bad debt

Question 5

gross profit margin

Answer 5

gross profit expressed as a percentage of revenue/turnover

Question 6

operating profit

Answer 6

the difference between gross profit and business overheads, such as selling and administrative expenses

Question 7

operating profit margin

Answer 7

operating profit expressed as a percentage of revenue/turnover

Question 8

profit for the year (net profit)

Answer 8

the difference between operating profit and interest and exceptional items

Question 9

profit for the year margin (net profit)

Answer 9

net profit after tax, expressed as a percentage of revenue

Question 10

statement of comprehensive income

Answer 10

a financial document showing a company’s income and expenditure over a particular time period,usually one year

Question 11

revenue/turnover

Answer 11

the total income of a business resulting from sales of goods or services