Income Statement Flashcards
0
Q
Revenue
A
An inflow of economic benefit in the form of assets that increase owner’s equity (except capital contribution)
1
Q
Calculating Profit
A
Profit = Revenues - Expenes
2
Q
Expenses
A
An outflow of economic benefit in the form of assets, that reduces oe (except drawings)
3
Q
Cash Surplus
A
A cash surplus(deficit) measure the difference between cash receipts/payments
4
Q
Net Profit
A
A net profit (or loss) measure the difference between revenues and expenses
5
Q
What are the six item that do not appear in the income statement
A
Cash contribution
Loan receipt
GST received
Drawing
Loan repayment
GST paid
