Income Statement 1 Key Terms

The Value of goods and services sold by the business

• Sales

• Sales Returns

• Purchases

• Opening Stock

Goods or Services returned by the customer

• Sales Returns

• Opening Stock

• Carriage Inwards

• Cost of Sales

The cost of goods bought by the business in a year

• Opening Stock

• Purchases

• Gross Profit

• Carriage Outwards

The taxes paid for bringing goods into the country

• Import/Customs

• Purchases

• Cost of Sales

• Sales

Business has sales of 80,000

Cost of sales of 35,000

What is the gross profit or loss?

• 55,000 Profit

• 45,000 Profit

• 30,000 Loss

• 50,000 Profit

Which of the following is NOT part of the cost of sales?

• Purchases

• Carriage Inwards

• Opening Stock

• Sales