Income Statements

Please choose the most appropriate answer for each sentence.
  • 1

    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.

  • 2

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

  • 3

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

  • 4

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

  • 5

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

  • 6

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

  • 7

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

  • 8

    Finally, ..... tax is deducted.

  • 9

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

  • 10

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

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