True or False
Net Income = Revenues - Expenses
True
This is an increase in assets or decrease in liabilities caused by the provision of services or products to customers. Receiving assets by selling products or services.
Revenue
What do we call the profit made by a business after all expenses have been deducted?
Net profit
Amounts earned by a company in its main operating activities are known as ________
Revenues
The net income on an income statement is verified by checking the balance sheet.
This is the reduction in value of an asset as it is used to generate revenue.
Expenses
What do we call the difference between sales and the cost of sales?
Gross Profit
Gross Profit minus Operating Expenses is best defined as __________.
Operating income
An income statement reports information over a period of time, indicating the financial progress of a business in earning a net income or a net loss.
(Отчет о прибылях и убытках представляет информацию за определенный период времени, показывая финансовый прогресс бизнеса в получении чистой прибыли или чистых убытков.)
True
Financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period.
Income statement
The income statement line gross profit will appear on which income statement format?
Single step or Multi-step
Multi-step
At the end of the accounting year, income statement accounts are ______________.
Closed
When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue.
Когда предприятие имеет два разных источника дохода, для каждого вида дохода следует подготовить отдельный отчет о доходах.
False
A type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future.
Prepaid expenses
What is defined as sales minus all variable expenses?
Contribution Margin
On a multiple-step income statement, interest expense is reported as a ________________ or other expense.
Non-operating