Ch.21- Income statements Flashcards
1
Q
Gross profit
A
The difference between revenue and cost of sales
2
Q
Profit
A
the difference between revenue and total costs
3
Q
Total cost
A
Cost of sales plus expenses
4
Q
Revenue
A
The amount earned from the sale of products
5
Q
Cost of sales
A
The cost of purchasing the goods used to make the products sold
6
Q
Expenses
A
day-to-day operating expenses of a business
7
Q
Income statement
A
A financial statement which records the revenue, costs and profits of a business for a given period of time
