Test Your Knowledge - Income Statement

What is the primary purpose of the income statement?

To calculate net income or loss
To track cash flow
To record inventory

Which of the following is included in an income statement?

Assets
Revenue and expenses
Cash inflows and outflows

What does the income statement show for a specific period?

Profit or loss
Liabilities
Assets and equity

Which of the following is NOT a typical category in an income statement?

Revenue
Expenses
Capital contributions

Which section of the income statement would you find the cost of goods sold (COGS)?

Operating income
Expenses
Revenue

Which of the following represents net income?

Revenue minus expenses
Assets minus liabilities
Equity minus liabilities

What is the typical order of items on an income statement?

Revenue, expenses, net income
Revenue, assets, liabilities
Expenses, revenue, net income

What is operating income on the income statement?

Total income minus non-operating expenses
Total revenue minus the cost of goods sold
Total revenue minus operating expenses

Which of the following is included in a typical income statement?

Sales revenue
Balance sheet items
Bank account balances

What is the formula to calculate gross profit?

Revenue minus cost of goods sold
Revenue minus operating expenses
Operating income minus non-operating expenses

Test Your Knowledge - You have 10 questions!