Income Statement

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue, cost of goods and Expenses
• Expenses and Net Assets

What is the purpose of an income statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit

Which of the following means money spent?

• income

• expense

• net income

• gross income

Which of the following means money received?

• net loss

• net gain

• insurance

• income

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

Which one is not an expense?

• raw materials
• production costs
• commission received
• insurance

Gross profit is calculated by...

• Revenue - Total Costs

• Revenue + Variable Costs

• Revenue - Cost of Sales

• Revenue - Fixed Costs

Cost of sales is calculated by...

• Opening stock + purchases - closing stock

• Opening stock + purchases + closing stock

• Adding up all of the stock bought during the year

• Opening stock - closing stock

When expenses are greater than income?

• expense

• net loss

• net income

• net gain

A Net Profit occurs if:

• Gross Profit is greater than expenses
• Expenses greater than Gross Profit
• None of the listed choices