Chapter 33, Income Statements Flashcards Preview

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Flashcards in Chapter 33, Income Statements Deck (6)
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1
Q

Gross profit

A

revenue minus cots of sales

2
Q

Operating Profit

A

Gross profit minus expenses

3
Q

Profit for the year

A

Profit and dividends minus tax

4
Q

Contents of an Income Statement

A
  • Revenue
  • Costs of sales
  • Gross profit
  • Operating costs
  • Profit before tax
  • Profit for the year
  • Non operating income/expenses
5
Q

Three sections of the income statement

A
  • Trading account
  • income statement
  • appropriation account
6
Q

Uses of Income Statement

A
  • helps with decision making
  • allows comparisons to be made
  • calculate ratios
  • information for stakeholders