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8 Cards in this Set
- Front
- Back
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Revenue |
The total value of sales made to customers I that period |
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Distribution and admin costs |
Operating costs that are not directly related to producing the good or services |
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Finance expenses |
Interest paid on bank and other borrowings - interest income received is shown here. Shareholders use this figure to assess how much profit is being used for funding the company. |
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Profit before tax |
Operating profit - finance expenses |
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Tax |
An estimate of the amount of corporation tax a business is likely to pay |
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Profit attributable to shareholders |
The profit left after tax is accounted for, this is then shared between dividend payments and retained profits. |
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Income statement |
An account showing the revenue and expenditure of a firm over a period of time (usually a year) and the use of the profit by the firm |
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The three sections |
The trading account: the revenue earned from sales and the cost of sales The profit and loss account: extended of the trading account, including overheads. Appropriation account: how the company will distribute profit/loss, tax and retained profits are deducted at this point. |
