Income Statements

The statement of income and expenses reports the company's income and expenses for the time period: it is also called a .....-and-loss statement.

The first item on the statement is the total amount of sales of products or services; this is often referred to as ..... sales.

The main deduction from this revenue is called ..... of sales, the amount of money the company spent to produce the same goods or services.

The next deduction is ..... expenses - for example, administrative salaries and research costs, which do not vary directly with production.

Depreciation expenses the wear and ..... on assets like machinery, equipment and furnishings.

The depreciation charge for using these assets during the accounting period is a ..... of their original cost.

..... income is the money that the company earns by keeping its cash in savings accounts, term deposits, etc.

Finally, ..... tax is deducted.

The final entry is the ..... line, which represents net earnings of the company during the accounting period.

Additionally, ..... indicates how much shareholders would receive if the company distributed all of its net earnings as dividends.