Income Statement

What is revenue?

• Total income from sales

• Revenue minus direct costs (COGS)

• Gross profit minus operating expenses

• Sales minus operating expenses

How is gross profit calculated?

• Total income from sales

• Revenue minus direct costs (COGS)

• Gross profit minus operating expenses

• Sales minus operating expenses

What does operating income represent?

• Total income from sales

• Revenue minus direct costs (COGS)

• Gross profit minus operating expenses

• Sales minus operating expenses

Which of the following best describes revenue?

• Only sales numbers

• Sales minus direct production costs

• Sales minus COGS minus operating expenses

• How much the company brings in overall

What does gross profit indicate about a company?

• How much the company brings in overall

• How efficiently the company makes its product

• How profitable the company’s operations are

• Total income from sales

What is the significance of operating income?

• How much the company brings in overall

• How efficiently the company makes its product

• How profitable the company’s operations are

• Total income from sales

Which of the following is NOT a component of gross profit?

• Revenue

• Direct costs (COGS)

• Operating expenses

• Sales numbers

What is the primary focus of revenue?

• Efficiency in production

• Overall income from sales

• Profitability of operations

• Cost management

Which term describes what you keep after paying to run the business?

• Revenue

• Gross profit

• Operating income

• Direct costs

What does the term "COGS" stand for?

• Cost of Goods Sold

• Cost of Gross Sales

• Cost of General Services

• Cost of Generated Sales