Profit Income Statement Flashcards by Saif Asghar

Q

What is an income statement

A

Shows how a business has performed rover a specific accounting period.

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Q

What is the purpose of on income statement

A

Legal requirement for tax purpose
Stakeholders will be interested is now the business is performing

Targets can be set from previous fear accounts

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Q

What is a profit margin

A

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Q

What is a profit margin

A

A financial ratio that compares 2 figures from a business’s financial statement

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