24. Income Statements (GCSE)

Define 'final accounts' [2K]

Define 'income statement' [2K]

Define 'retained profit' [2K]

Costs including inventories and raw materials.

• Cost of sales

• Overhead costs

• Other expenses

• Depreciation

Which of these is NOT a reason for profit being so important to a business?

• Reward for risk-taking

• A source of finance

• Allows business to invest in R&D

• It can reduce costs

What is the equation for profit?

• Fixed Costs + Variable Costs

• Revenue - Cost

• Net Profit - Gross Profit

• Sales Revenue - Cost of Sales

What is the difference between cash and profit? [2K]

Which of these is NOT a reason for making an Income Statement?

• Legal reasons

• Compare to previous years

• To benefit from Economies of Scale

• Attracting new investors