Principles of Accounts

What are the main components of the Income Statement?

• Equity, assets, liabilities, cash flows

• Expenses and Revenues

• Assets liabilities and capital

• Income, expenditure and financial

What is another name for the Income Statement?

(a)  

Which of the following are examples of items that can be found in the income statement?

• Rent, Purchases, Sales, Net profit

• Building, Equipment, Capital

• Net profit and Gross profit

• Sales, capital, money

How do you calculate Net Sales in the income statement?

(a)  

Which of the following represents the calculations for C.O.G.A.S?

• Opening stock ADD net purchases

• Net purchases - gross profit

• Sales - return inwards

Which of the following represents the calculations for Net Purchases?

• sales LESS return inwards

• C.O.G.A.S LESS closing stock

• purchases ADD carriage inwards LESS return outwards

Which of the following represents the calculations for Cost of Sales?

• sales LESS return inwards

• C.O.G.A.S LESS closing stock

• Net Sales LESS cost of sales

Which of the following represents the calculation for Gross Profit?

• C.O.G.A.S LESS closing stock

• Net Sales LESS cost of sales

• Gross profit LESS total Expenses

Which of the following represents the calculation for Net Profit?

• Gross profit LESS total Expenses

• Net Sales LESS cost of sales

• C.O.G.A.S LESS closing stock

Identify three financial statements