Income Statement Flashcards
What are the sections of an income statement?
Revenue, Expenses, Net Income
What is Sales Revenue? Under which category is it under?
Cash and promises received from sale of beverages; Revenues
What are categories under Expenses?
- Cost of goods sold
- Selling, general, and administrative expenses
- Interest expense
- Income before income taxes
- Income tax expense
What is Cost of goods sold? Under which category is it under?
Cost to produce products sold; Expenses
What are Selling, general, and administrative expenses? Under which category are they under?
Other operating expenses (utilities, delivery costs, etc.)
What is Interest expense? Under which category is it under?
Cost of using borrowed funds; Expenses
What is Income tax expense? Under which category is it under?
Income taxes on period’s income before income taxes; Expenses
What is Net Income?
Revenues earned minus expenses incurred
