Chapter 23: Income Statements

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue, cost of goods and Expenses
• Expenses and Net Assets

Which of the following is not a type of revenue?

• Sales
• Commission
• Service Fee
• Rent paid

A Net Profit occurs if:

• Gross Profit is greater than expenses
• Expenses greater than Gross Profit
• None of the listed choices

An expense is...

• money a business spends on the general operation of business
• money the business owes to other organisations and people
• money Owed to the Business
• None of the above

Net Profit is:

• Assets less Liabilities
• Gross Profit less Expenses
• Revenue less Liabilities
• Liabilities less Assets

An income statement is also known as a 'Trading, profit/loss & Appropriation Account'?

• False
• True

The Financial year is 1st January - 31st December

• True
• False

When creating an income statement, the interest on a loan is

• revenue
• liability
• an expense
• none of the above

An income statement is

• A way of listing sales, cost of goods sold and expenses.
• Another word for 'Gross Profit'
• Same as the Balance Sheet
• None of the above.

What happens to the retained profit in the income statement?

• Transferred and added to capital in balance sheet
• Transferred and added to liabilities in the balance sheet
• Transferred and subtracted to capital in balance sheet
• Transferred and subtracted to liabilities in balance sheet