Understanding Income Statements Flashcards
1
Q
What is a common term for “Profit and Loss” statement?
A
Income statement
2
Q
What is the first section– and second section of an Income Statement?
A
1st: Revenue 2nd: Expenses
3
Q
How do you calculate gross profit?
A
Revenue-COGs=Gross Profit
4
Q
What is an Operating Revenue
A
$ from primary products or services
5
Q
What is an Operating Expense?
A
Cost of core operations- rent, insurance premiums and employee wages
6
Q
What is non-operating rev?
A
Interest income, expense, loss/gains on investments
7
Q
What does the income statement show?
A
The company’s financial performance over a period of time
