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