S1. Basic definitions

Income Statement is the same as the Profit & Loss Statement

• True

• False

Total revenue equals net income

• True

• False

Gross profit equals Total revenue minus operating expense

• True

• False

Operating expense equals selling, general and administrative expenses

• True

• False

Operating profit is usually less than gross profit

• True

• False

The net income is usually greater than the operating profit

• True

• False

If costs and expenses including net interest expenses are subtracted from revenues, the result is operating profit.

• True

• False

EBT is

• Gross profit

• the amount of money left after all expenses (except taxes) are subtracted from revenues

  earnings before interest and taxes

• the net income

EBT equals EBIT

• True

• False

EBT is greater than EBIT

• True

• False