income statements Flashcards
(5 cards)
1
Q
what is gross profit
A
profit made from buying and selling goods before expenses are deducted - revenue - cost of sales
2
Q
what is profit for the year
A
final profit once all expenses have been deducted- gross profit- expenses
3
Q
what is sales revenue
A
the amount of money made from selling goods or services
4
Q
what is cost of sales
A
the amount of money spent on selling goods
5
Q
purpose of producing an income statement
A
help monitor performance against previous years which will highlight if the business has improved or not, for legal reasons
