EQL208 2

The difference between revenue and expense is net income.

• True

• False

The most important thing to look for in an income statement is _____?

• net income

• revenue

Gross profit is the profit earned after subtracting manufacturing and selling _____.

• income

• expenses

EBIT is the profit which has tax and interest in it.

• True

• False

A company pays the tax _____ EBIT.

• before

• after

Sometimes, depreciation is also subtracted before the calculation of net income.

• True

• False

Net income is the solution of total revenue minus total _____.

• income

• expenses

You should check the regular source of income of the business.

• True

• False

You should calculate the figures because _______.

• it is fun

• there can be a mistake

You should always compare the income statement of different years.

• True

• False