Income Statement

The Income Statement lists a businesses: Revenue and Expenses

• Assets and Liabilities

• Revenue and Expenses

• Cash Flow and Investments

• Sales and Profits

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue

• Asset

• Expense

• Liability

How could a business improve net profit?

• reduce expenses

• increase COGS

• reduce sales

• increase expenses

Gross profit is calculated by...

• Revenue - Expense

• Revenue + Expense

• Revenue x Expense

• Revenue / Expense

Which of the following is NOT a section on the Income Statement?

• heading

• revenue

• expense

• capital

When expenses are greater than income?

• net loss

• net gain

• break-even

• profit

A Net Profit occurs if: Gross Profit is greater than expenses, Expenses greater than Gross Profit, None of the listed choices

• Gross Profit is greater than expenses

• Expenses greater than Gross Profit

• None of the listed choices

• Gross Profit equals expenses

If total sales is 20,000 and Total Expenses is 1000, then profit will be:

• 18000

• 19000

• 20000

• 17000

Which is under the total expenses?

• single rule

• double rule

• potatoes

• total rule

If total expenses exceed total revenue, a net loss is reported.

• True

• False

• It depends on the accounting method used.

• Only if expenses are fixed.