Statement of Comprehensive income Flashcards
1
Q
Statement of comprehensive income -
A
financial document showing a firm’s income and expenditure in a particular time period. It is used to calculate the profit at the end of the financial year.
2
Q
Gross profit =
A
Revenue - Cost of sales
3
Q
Operating profit =
A
Gross profit - Expenses
4
Q
Distributed profit -
A
profit returned to the owners of the business
5
Q
Retained profit -
A
profit held by a business rather than returning it to the owners and which may be used in the future
6
Q
Finance cost -
A
interest paid on loans
7
Q
Finance income -
A
interest received by the business on deposit accounts
8
Q
Net profit -
A
profit before taxation
9
Q
Normal profit -
A
minimum profit a business needs to make to retain the interest of the owner
