Income Statement

An Income Statement is

• A formal way of listing sales and expenses for the year.

• Another word for 'Gross Profit'

• Same as the Cash Flow Statement

• None of the above.

An income statement is also known as a 'profit and loss statement'?

• True

• False

The income statement shows the financial performance of the business

• on a GIVEN DATE

• for a PERIOD of time

The revenue section of an income statement usually begins with

• Expenses

• Sales

• Net profit

• Cost of goods sold

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

• an expense

• revenue

• neither

Net profit is

• Assets less Liabilities

• Revenue less Expenses

• Revenue less Liabilities

• Liabilities less Assets

Reports should include all information that is useful for decision making is

• comparability

• understandability

• reliability

• relevance

Which of the following is not a revenue item?

• Receipt of a Loan

• Service fees received

• Interest received

• Cash received for services provided to a customer

True or False - A Net Loss will always result in a Cash Deficit?

• True

• False

A reason why a business may suffer a cash deficit but earn a net profit is

• Cash Drawings

• Cash Capital Contribution

• GST Refund

• Decrease in Wages expense