Income Statement

Profit is the reward for___

• workers

• banks

• costumers

• enterprise

The bank manager, business ___ and managers are the main users of the income statement

• owners

• workers

• shops

• community

Which one of the following appears on an income statements?

• Owner's capital

• Expenses

• Cash at bank

• Value of inventory

Revenue is $5000 and gross profit $1500, the cost of sales is ___

• $6500

• $5000

• $3500

• $1500

Profit is $10000, cost of sales is $4000, expenses is $4000 and revenue is ___

• $ 36 000

• $ 18 000

• $ 14 000

• $ 8000

Gross profit is higher than profit

• True

• False

Revenue minus expenses equals gross profit

• True

• False

Depreciation is not included on the income statement

• True

• False

Retained profit for a company is what is left from profit after tax and dividends have been deducted

• True

• False

Income statements are often used by managers when making decisions

• Yes

• False