Income Statement Components

Net Profit after taxes and dividends, reinvested in the business. Example: $195 after taxes/dividends funds new equipment.

• Retained Profit

• Gross Profit

• Operating Profit

• Net Income

Revenue minus Cost of Sales, showing profitability before overheads. Example: $1250 - $900 = $350.

What is this term called?

• Net Profit

• Gross Profit

• Operating Profit

• Total Revenue

Overhead costs, such as rent, utilities, salaries. Example: A shop pays $155 for rent and utilities.

• Revenue

• Profit

• Expenses

• Assets

Cost of producing or purchasing goods sold, calculated as Opening inventories + Purchases - Closing inventories. Example: $200 + $600 - $150 = $650.

What is this concept called?

• Cost of Sales

• Gross Profit

• Net Income

• Operating Expenses

Income from sales, calculated as Units sold × Cost per unit. Example: Selling 100 items at $10 each = $1000.

• Revenue

• Profit

• Cost of Goods Sold

• Net Income

Gross Profit minus Expenses, showing overall profitability. Example: $350 - $155 = $195.

What is this calculation called?

• Gross Profit

• Operating Income

• Net Profit

• Total Revenue