Unit 6 Financial Analysis 2 (LATE)

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: 

• Balance Sheet
• Statement of Retained Earnings
• Statement of Cash Flows
• Income Statement

If total expenses exceed total revenue, a net loss is reported

• True
• False

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent

How do you calculate Gross Profit?

• Sales - COGS

• Sales - NP

• COGS - Expenses

• COGS - NP

The income statement can be expressed as an equation:

• Income =Income-Expenses
• Revenue-Expenses = Net Income (Loss)
• Revenue + Expenses = Income/Loss
• Expenses = Net Income + Revenue

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

• Revenue
• Expense
• Net Income
• Net Loss

The sources of money generated by the sale of products or services.

• Revenue
• Expenses
• Net Income
• Net Loss

This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to.

• Income Statement
• Balance Sheet

Assets = Liabilities + Equity

• Balance Sheet
• Income Statement

What a company owes to creditors:

• Assets

• Liabilitites

• Equity