What do we call the total value of goods sold to a customer?
Gross profit
Net profit
Sales
What do we call the profit made by a business after all expenses have been deducted?
Cost of sales
What do we call the difference between sales and the cost of sales?
Expenses
Under which heading would raw materials be listed?
Revenue
Under which heading would wages, electricity and rent be listed?
Which result does sales minus the cost of sales give?
Which result does gross profit minus expenses give?
What does an income statement (profit statement) show?
The financial performance of a business
Cash flow of a business
The total worth of a business
Which type of company is legally required to produce and publish an income statement (profit statement)?
Partnership
Sole trader
Limited company
Which of these terms describes the direct cost of the items used to make a product?
Cost of goods sold