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

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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.

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3
Q

Gross profit formula?

A

Sales revenue - costs of sales

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4
Q

Net profit formula ?

A

Gross profit- expenses

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5
Q

Ways to increase profit?

A

Increase sales revenue(4Ps)
Reduce Cost of sales(Raw materials)
Reduce expenses(Rent)

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