Income Statement Flashcards
1
Q
Income statement is also known as?
A
Profit and loss account
2
Q
What does the Income statement show?
A
Profit/ loss made in the last financial year
3
Q
Gross profit
A
Turnover - Cost of sales
4
Q
Revenue
A
Value of all sales excl. VAT
(includes both credit and cash sales)
5
Q
Cost of Sales
A
Cost of stock that has been sold
(Not including money spent on stock yet to be sold)
6
Q
Finance income
A
Income earned on investments held during the year
7
Q
Finance costs
A
Cost of loans
8
Q
Overheads
A
expenses incurred
9
Q
Changes in reserves is classed as what?
A
A change in equity and so the IFRS requires these to be shown in either the SOCE (Statement of Change in Equity) or the SORIE (Statement of Recognised Income and Expenses)
