Income statement

Cards (2)

  • Overall
    A summary of the income earned and the expenses incurred over a period of trading
    The income statement is a financial statement that shows whether the business has made a profit or loss during a period of time
    COGS is how much the goods or services have cost the business before sales
  • Formulae
    COGS = Opening stock + purchases - closing stock
    Gross profit = Sales - COGS
    Net Profit = GP - expenses