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