Income Statement

Question 1

Major Income/Revenue

Answer 1

Sales/Fees

Question 2

Group one Expenses

Answer 2

The name of this expense category will be provided and will be appropriate to the service firm being assessed, e.g Plumbing Expenses for a Plumber
These are comprised of Distribution expenses (as per trading entity) and any other expenses specific to the provision and delivery of the service.

Question 3

Administrative Expenses

Answer 3

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

Examples: Office Salaries/Wages, Rent, Insurance, Depreciation on Office Equipment/Buildings, Telephone, Accountancy Fees

Question 4

Finance Cost

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: interest received, dividends received, rent received, commission received