Income Statement

Question 1

1)

Answer 1

Sales minus cost of sales equals gross profit

Question 2

2)

Answer 2

Gross profit plus other income equals gross operating income

Question 3

3)

Answer 3

Gross operating income minus operating expense equals operating profit

Question 4

When minusing

Answer 4

Use brackets

Question 5

4)

Answer 5

Operating profit plus interest income equals profit before interest expense

Question 6

5?

Answer 6

Profit before interest expense minus interest expense equals net profit for the year

Question 7

There’s two types of there incomes

Answer 7

Income for services rendered like fees income and commission income
Then operating income like rent income, discount received and bad debts recovered.