Income Statement

Net loss will result if:

• Revenue exceeds expense

• expense exceeds revenue

The sections of the income statement are:

• Heading , Revenue, expense and net income section

• Revenue, expense and net income section

• Revenue and expense only

Which one does "retained profit" belong to

• Balance Sheet

• Income statemet (Profit Lose)

• Cash flow Statement

Which one does "Salary" belong to

• Balance Sheet

• Income statemet (Profit Lose)

• Cash flow Statement

Which one does "Sales Revenue" belong to

• Balance Sheet

• Income statemet (Profit Lose)

• Cash flow Statement

Which one does "Expense" belong to

• Balance Sheet

• Income statemet (Profit Lose)

• Cash flow Statement

What is the primary purpose of an income statement?

• To show the financial position of a company

• To display the cash flow activities

• To summarize revenues and expenses

• To list all assets and liabilities

Which of the following is considered an operating expense on an income statement?

• Interest expense

• Cost of goods sold

• Depreciation

• Dividends paid

In which section of the income statement would you find 'Gross Profit'?

• Revenue

• Operating Expenses

• Net Income

• Cost of Goods Sold

What does the 'bottom line' of an income statement refer to?

• Total revenue

• Net income

• Gross profit

• Operating income