STAT. COMPREHENSIVE INCOME

• What is the statement of comprehensive income?

  a financial document showing a firms income and expenditure in a particular time period
• What is profit?

  money left over after all cots have been subtracted from revenue
• What is gross profit?

  sales revenue - cost
• What is operating profit?

  gross profit - expenses
• What is distributed profit?

  profit that is returned to the owners of a business
• What is retained profit?

  profit held by a business rather than returning it to the owners which may be used in the future
• What is a dividend?

  a share of the profit paid to shareholders in a company
• What is the statement of comprehensive income used for?

  to calculate the profit at the end of the financial year. It will do this in two steps. calculating the gross profit and operating profit
• What does the comprehensive income include reports of?

  • revenue
  • cost of sales
  • gross profit
  • administrative expenses
  • other operating expenses
  • selling expenses
  • operating profit
  • finance costs
  • profit of the year
  • profit for the year after taxes
• How might the statement of comprehensive income be used in decision making?

  • investment decisions
  • cost analysis
  • basis for future forecasts
  • making comparisons
• What is normal profit?

  the minimum profit a business needs to make to retain the interest of the owners