List six terms that you consider to be associated with the income statement (revenues and expenses).
In financial accounting, the income statement is one of the statements that are prepared. An income statement is used to indicate whether an organization is profitable or not. It contains expense items and revenues that a company generates from its operations.
Answer and Explanation:
The list of terms that are used in the income statement are:
- Gross income. It refers to the total revenue from the operations of a company.
- cost of good sales. it is the cost that is used to produce the products or items that are sold.
- The gross profit. Refers to profit before expenses are deducted.
- operating expenses. This consists of all the cots that a given organization has incurred in the generation of revenue.
- Income tax. The tax to be paid on profit that the company has realized.
- The net profit. This refers to the amount of income a company is able to make after deduction of all expenses.
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from Accounting 101: Financial AccountingChapter 8 / Lesson 5