Profit and Loss Statement
What are the 2 other names for profit and loss statements?
1. Income statement 2. Revenue and Expense statement
What are the three types of people who usually handle profit and loss statement?
1. Professional Accountants 2. CFO´s 3. Controllers
What 2 areas do business owners track with profit and loss statement?
1. Revenues 2. Expenses
What are the 3 time periods for profit and loss statements?
1. Year 2. Month 3. Quarter
What is the abbreviation for costs of goods sold?
COGS
Direct costs
Costs are the costs that you incur when you make your products or deliver your services.
What is operating income?
Operating income is gross income - SGA´s
How is the net income calculated?
Profit - loss = net income
What is the difference between a profit and loss?
Profit is when you make money, loss is when you lose money.
Who regulates profit and loss statements?
SEC
What is is a profit and loss statement?
The financial performance of a company for a given period of time.
Revenue
The ¨top-line¨ is the money you bring in from sales.
How is the net income before taxes calculated?
Total Operating - Gross Profit = Net income before taxes
How is the gross profit calculated?
Total costs of goods - Net Sales = Gross Profit
Gross margin
Your direct costs minus your revenue = gross margin
Operating expenses
cover all the expenses you incur to keep your doors open
Gross margin percentage
gross margin as a percentage
What is another word for revenue?
income