Income statements (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is the primary purpose of an income statement?
What is the primary purpose of an income statement?
Track money flow from revenue to profit
Why is revenue called the 'top line' in an income statement?
Why is revenue called the 'top line' in an income statement?
It appears at the top of the statement
When is revenue recorded in an income statement?
When is revenue recorded in an income statement?
When the sale is made
Why is revenue not the same as profit?
Why is revenue not the same as profit?
Revenue is before costs are deducted
What does cost of sales include?
What does cost of sales include?
Direct costs of producing goods/services
How is gross profit calculated?
How is gross profit calculated?
Revenue - Cost of Sales
How is net profit calculated?
How is net profit calculated?
Gross Profit - Operating Expenses
What term is used for distribution and admin expenses?
What term is used for distribution and admin expenses?
Overheads
What do finance expenses represent?
What do finance expenses represent?
Cost of borrowing money
How is profit after tax calculated?
How is profit after tax calculated?
Profit Before Tax - Tax
Why is profit after tax the most important figure?
Why is profit after tax the most important figure?
Shows actual wealth created for owners
Why compare income statements year-on-year?
Why compare income statements year-on-year?
To identify trends and assess performance