Income Statement

Which of the following means money received?

• Net loss

• Net gain

• Insurance

• Income

An accounting report that is used to show revenue and expenses is the

• Loss and Profit Statement

• Reveune and Expenses Statement

• The Profit or Loss Statement

• The Income Statement

The Income Statement lists a businesses:

• Assets and Expenses

• Owner's Equity and Revenue

• Revenue, cost of goods 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

Income statement includes data like ____.

• Revenue amount

• Profit amount

• Picnic amount

• Loss amount

Trading Account

• The financial record of all the expenditures of the business

• The part of the income statement that shows how much money is given to the government in taxes

• The part of the income statement that shows how the net profit is calculated

• The part of the income statement that shows how the gross profit is calculated

What is the purpose of preparing an income statement?

• To calculate the profit or loss for a given time period

• To itemise the inventory that the business has for sale in its shop

• To sell inventory

• To provide services

Classify the following: Fees earned.

• Income

• Expense

• Asset

• Liability

Classify the following: Wages.

• Income

• Expense

• Asset

• Liability

Net income will result if:

• Revenue exceeds expense

• expense exceeds revenue