Income statements Flashcards
1
Q
What does a financial statement record?
A
What a business is doing with its money.
2
Q
What are the two types of financial statements?
A
- income statement (profit and loss account)
- statement of financial position (balance sheet)
3
Q
Opening stock
A
stock leftover from previous year
4
Q
What are purchases?
A
raw materials/stock
5
Q
Sales (turnover)
A
revenue
6
Q
Closing stock
A
calculation of stock that has not yet been sold.
