Income statement 1.1

Question 1

Major income/revenue

Answer 1

Sales/fees

Question 2

Group 1 Expenses

Answer 2

the name of this expense category will be provided and will be appropriate to the service firm being assessed

Question 3

Administrative Expenses

Answer 3

Administrative expenses are costs associated with the administration of the entity as a whole.

Examples (not limited to): Office Salaries/Wages, Rent, Insurance

Question 4

Finance Costs

Answer 4

Finance costs arise from an entity financing its operations from external sources. Finance Costs are limited to different types of interest paid.

Examples: Interest on Overdraft, Interest on Loan, Interest on Mortgage.

Question 5

Other income (revenue)

Answer 5

All other revenues/income and gains

Examples (but not limited to): interest received, dividends received, rent received, commission received

Question 6

Distribution Expenses

Answer 6

Distribution costs are expenses incurred in transferring ownership of finished goods to the consumer. Those expenses incurred through the promotion, storage, selling and delivery of the inventory for sale.

Examples (not limited to): Advertising, Sales Salaries/Wages, Vehicle Expenses