N5 5.4 Income Statements

Gross Profit = ​ (a)   - ​ (b)  

It is the money made by the business when excluding ​ (c)   .

• sales revenue
• cost of sales
• expenses
• profit for the year
• costs

Profit for the Year = ​ ​ (a)   - ​ (b)  

It is the money made by the business when subtracting all ​ (c)   ​ .

• Expenses
• costs
• Gross Profit
• profit for the year
• overheads

Expenses are ​ ​ (a)   costs the business must pay to keep itself ​ (b)   . These can include ​ rent, insurance, and ​ (c)   .

• overhead
• running
• electricity
• materials
• extra
• profitable

Cost of sales are outgoings that are ​ (a)   associated with making the product. Examples include transport and ​ (b)   .

• directly
• Indirectly
• labour
• rent

An income statement can be shown to ​ (a)   because it will prove to them you can ​ (b)   a loan.

• banks
• repay
• investors
• profit

An income statement can be shown to ​ (a)   because it will prove to them you can make ​ (b)  

• banks
• investors
• profit
• loan

An income statement can be used to help ​ (a)   because the business can be compared with ​ (b)   years.

• decision-making
• previous
• competitors
• investing

An income statement can calculate ​ (a)   payments because the business can see it's (b)   .

• tax
• profit for the year
• gross profit
• loan

A = ​ ​ (a)  

B = ​ (b)  

C = ​ (c)  

• 200
• 3500
• 2400
• 3700
• 300
• 2600

A = ​ (a)  

B = ​ (b)  

C = ​ (c)  

• 5800
• 400
• 3900
• 4000
• 5700
• 300