ENTREP Q2 MWF 1:30

The Income Statement is also known as the Profit and Loss Statement.

• True

• False

The Income Statement reports revenues, expenses, and net profit over a specific period.

• True

• False

Net Income is calculated as Expenses – Revenues.

• True

• False

Sales Revenue refers to the money earned from selling products or services.

• True

• False

Cost of Goods Sold (COGS) represents the cost to produce or purchase goods sold.

• True

• False

Gross Profit is obtained by subtracting COGS from Revenues.

• True

• False

Operating Expenses include costs directly related to manufacturing products.

• True

• False

Rent and salaries are examples of Operating Expenses.

• True

• False

Operating Profit is the amount left after subtracting Operating Expenses from Gross Profit.

• True

• False

Interest Expense is the cost of borrowing money.

• True

• False