Financial Statements

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue and Expenses

• Expenses and Net Assets

What is the purpose of an income statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit

Which of the following means money spent?

• income

• expense

• net income

• gross income

Which of the following means money received?

• net loss

• net gain

• insurance

• income

When expenses are greater than income?

• expense

• net loss

• net income

• net gain

If total expenses exceed total revenue, a net loss is reported.

• True

• False

If total sales is 20,000 and Total Expenses is 1000, then profit will be:

• 21000

• 19000

• 1000

Which of the following is NOT a section on the Income Statement?

• heading

• revenue

• expense

• capital

Managers and owners use these to make their business decisions

• Financial Statements
• General Ledger