N5 Income Statement Revision

What is the first term you will see on an Income Statement?

• Cost of Sales

• Sales Revenue

• Profit for the Year

• Expenses

What is the last term you will see on an Income Statement?

• Cost of Sales

• Expenses

• Gross Profit

• Profit for the Year

What does the term Revenue mean?

• How much it cost to make the product

• How much cash is coming into the business

• How much money the business gets in from selling goods

• How much profit the business has made

What does the term Cost of Sales mean?

• How much the business spent on making the product

• How much the business spent on items such as rent, electricity etc

• How much money the business made from selling products

• How many suppliers a business has

What are examples of expenses?

• Rent, Insurance, Electricity, Raw Materials

• Rent, Raw Materials, Electricity, Wages

• Raw Materials, Wages, Electricity, Insurance

• Rent, Electricity, Wages, Insurance

How is Gross Profit calculated?

• Revenue + Cost of Sales

• Revenue - Cost of Sales

• Revenue - Expenses

• Revenue + Expenses

How is Profit for the Year calculated?

• Gross Profit + Expenses

• Revenue + Expenses

• Revenue - Expenses

• Gross Profit - Expenses

A =

• Revenue

• Purchases

• Inflows

• Outflows

B =

• 110,000

• 30,000

C =

• 120,000

• 100,000

• 40,000

• 20,000