Chapter 33, Income Statements Flashcards Preview

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

Gross profit

revenue minus cots of sales

2

Operating Profit

Gross profit minus expenses

3

Profit for the year

Profit and dividends minus tax

4

Contents of an Income Statement

- Revenue
- Costs of sales
- Gross profit
- Operating costs
- Profit before tax
- Profit for the year
- Non operating income/expenses

5

Three sections of the income statement

- Trading account
- income statement
- appropriation account

6

Uses of Income Statement

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