Income Statement Terms

gross profit

net sales - cost of goods sold // profit after manufacturing

depreciation

A decrease or loss in value

Operating expense

Costs involved in operating a business, such as rent, utilities, and salaries.

operating profit

Gross Profit - Expenses (profit after manufacturing and non-manufacturing costs)

net income

Revenues - Expenses (net profit, earnings, "the bottom line")

income taxes

Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends)

COGS

cost of goods sold (manufacturing costs)

EBIT

earnings before interest and taxes

Revenue

sales, "top line"

SG&A

selling, general, and administrative expenses (marketing, accounting, front office costs)

profit before taxes

the amount of profit earned by a business before calculating the amount of income tax owed

interest expense

the interest accrued on money borrowed

total operating expense

the sum of all costs to provide the services