Statement Of Comprehensive Income

Question 1

What is the formula for Revenue?

Answer 1

Unit price x quantity sold

Revenue represents the total income generated from sales before any expenses are deducted.

Question 2

How is Gross Profit calculated?

Answer 2

Sales revenue - cost of goods sold

Gross Profit indicates the profitability of core business activities, excluding overhead costs.

Question 3

What does Cost of Goods Sold (COGS) include?

Answer 3

Opening inventory + purchases - closing inventory

COGS reflects the direct costs attributable to the production of goods sold by a company.

Question 4

How is Profit / Loss for the year determined?

Answer 4

Gross profit - expenses + other income

This figure summarizes the overall financial performance of a company over a specific period.

Question 5

What is Net Book Value?

Answer 5

Cost - depreciation

Net Book Value is the value of an asset after accounting for depreciation, representing its current worth.

Question 6

How do you calculate Net (or Operating) Profit?

Answer 6

Gross profit - expenses

Net Profit reflects the company’s profitability after all operating expenses have been deducted from gross profit.