The income statement

What financial document summarizes a company's revenues and expenses?

• Annual report

• Balance sheet

• Statement of operations

• Cash flow report

__________ shows the financial results of the company at the end of the financial year.

• Interim report

• Annual report

• Cash flow report

• Expenditure report

Which of the following costs is NOT included in SG&A expenses?

• Advertising costs

• Salaries for administrative staff

• Research and development costs

• Office rent

EBITDA measures a company's profitability before deducting:

• Interest, taxes, depreciation, and amortization

• Interest, depreciation, and operating expenses

• Operating expenses, taxes, and labor costs

• Sales, marketing, and rent costs

Gross profit is calculated as:

• Total revenue - Cost of sales

• EBITDA - Interest expenses

• Net profit + Depreciation

• Total sales - SG&A

The term 'bottom line' refers to:

• Revenue before expenses

• Turnover

• Total operating cost

• Net profit after all expenses

Which financial term refers to a company's total sales before any deductions?

• EBIT

• Turnover

• Depreciation

• Net profit

What does R&D mean?

• Revenue and development

• Risk and debt

• Returns and dividends

• Research and development

Interest costs are expenses related to:

• Employee salaries

• Research and development

• Borrowing money from banks

• Advertising campaigns

What financial indicator shows profitability before deducting operating costs?

• Gross profit

• EBITDA

• EBIT

• Turnover