Income Statement flashcards are a helpful study tool that can assist students in learning and understanding the components of an income statement. These flashcards typically contain key terms, definitions, and examples related to income statements.
Income statements are financial documents that show a company’s revenues, expenses, and profits over a specific period of time. They are important for investors, analysts, and managers to assess a company’s financial performance and make informed decisions.
Learn Income Statement With Flashcards
1 / 10
quick facts
- An income statement is a financial statement that shows a company’s revenues and expenses over a specific period of time.
- It is also known as a profit and loss statement because it shows whether a company made a profit or incurred a loss during the period.
- The income statement includes various components such as revenue, cost of goods sold, gross profit, operating expenses, and net income.
- Investors and analysts use income statements to evaluate a company’s financial performance and profitability.
- Income statements are typically prepared on a quarterly and annual basis and are an important tool for assessing a company’s financial health.
card list
| Front | Back |
|---|---|
| Revenue | Revenue is the income a company earns from selling goods or services. |
| Cost of goods sold | Cost of goods sold is the total cost of producing goods or services that were sold during a specific period of time. |
| Gross profit | Gross profit is the money a company makes after subtracting the cost of goods sold from total revenue. |
| Operating expenses | Operating expenses are the costs a company incurs to run its day-to-day operations. |
| Net income | Net income is the amount of money a company has left after subtracting all expenses from their revenue. |
| Earnings before interest and taxes (EBIT) | EBIT is a company’s profit before subtracting interest and taxes. |
| Earnings before tax (EBT) | Earnings before tax (EBT): The amount of money a company makes before paying taxes. |
| Earnings per share (EPS) | Earnings per share (EPS): The portion of a company’s profit allocated to each outstanding share of common stock. |
| Depreciation and amortization | Depreciation: Decrease in value of an asset over time. Amortization: Gradual repayment of a debt through regular payments. |
| Interest expense | Interest expense is the cost of borrowing money. |
| Taxes | Money that people and businesses have to pay to the government. |