income statements Flashcards
1
Q
profit formula
A
revenue - expenses
2
Q
income statement
A
reports inflows and outflows of revenue and expenses
explains changes between balance sheets
3
Q
Layout of income statements
A
sales revenue - cost of sales = gross profit - operating expenses = operating profit - interest payable + interest receivable = profit for the year
4
Q
Assets x Income statement formula
A
assets = equity + / - profit (loss) + liabilities
