Income Statement Flashcards
1
Q
What are the 3 parts of an income statement?
A
Heading, Revenue, Expenses
2
Q
What question does the Heading of an income statement answer?
A
Who?, What?, When?
3
Q
What is revenue
A
The total amount of income the business received before deductions
4
Q
What are expenses
A
All the costs of the business
5
Q
What is Net Income or Net Loss
A
The amount of mony either made or lost by the business after deductions
6
Q
what is cost of goods sold
A
The amount the business paid for its inventory (the items the business sold)
7
Q
How do you calculate the gross profit
A
Total revenue-the cost of goods sold
8
Q
How do you calculate the gross profit
A
Total revenue-the cost of goods sold
9
Q
In an income statement what should be put before the date
A
For the period ending
