Income statement Flashcards
(4 cards)
1
Q
What is the accruals concept
A
Revenues/Expense recorded in the periods they are earned/ incurred, regaurdless of cash payments.
2
Q
How is cost of sales calculated
A
Opening stock + purchases(of stock) - closing stock
3
Q
what is the term used to describe the Profit beforeIntrest and tax? (PbIT)
A
Operating profit - profit generated by core operations, without being affected by finance or tax deductions.
4
Q
A
