Purpose of an income statement Flashcards
1
Q
shows the…
A
profit/loss made by the company from buying/selling goods
2
Q
can be used to compare…
A
gross profit and profit for the year over different years to identify trends and aid decision making
3
Q
comparisons can be…
A
made with similar companies in the same industry
4
Q
used to compare…
A
expenses and sales over the years or between departments to see areas that can be improved
