Income statement

Income statement reports financial data

• in a specific point in time

• during a period of time

Income statement is NOT called

• Cash flow statement

• P&L statement

• Statement of profit and loss

• Statement of revenue and expense

In income statement only revenues paid cash will be recorded

• True

• False

Revenues = 1000

COGS = 500

Gross profit= ?

• Can't tell

• 1500

• 500

Revenues = 2000

Net income = 900

Cost of goods sold = 700

Operating expenses =?

• 1300

• 1100

• 200

• 400

If operating expenses increased by 10,000, then gross profit will

• Increase by 10,000

• decrease 10,000

• stay the same

if total expenses exceeds total revenues, the company will report....

• net income

• net loss

• gross loss

• gross profit

inaccurate forecasting that leads to wasted products affects.....

• Revenue

• COGS

• Gross Profit

• Net profit

inaccurate forecasting that leads to out of stock issues will reduce....

• Revenues

• Net income

• COGS

• Operating expenses