The income statement Flashcards
1
Q
What are the main components of a income statement (P&L)
A
Revenue
Costs of sales
Gross profit
Net profit
Expenses
2
Q
What Is a income statement (P&L)
A
Is a financial document which indicates whether a business has made a profit or loss over a given period of time.
3
Q
Gross profit formula?
A
Sales revenue - costs of sales
4
Q
Net profit formula ?
A
Gross profit- expenses
5
Q
Ways to increase profit?
A
Increase sales revenue(4Ps)
Reduce Cost of sales(Raw materials)
Reduce expenses(Rent)