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SingaporeBusiness StudiesQuick questions
Financial Information and Decisions
Quick questions on Income statements and profit explained: O-Level Business Studies
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is purpose of the income statement?Show answer
An income statement shows a firm's revenue, costs and profit (or loss) over a period, usually a year. Its purpose is to show how much profit the business made and how it was made, so that owners, investors, lenders and managers can judge performance and make decisions.
What is main parts of the income statement?Show answer
The statement works down from sales to profit:
What is q1?Show answer
State the formula for gross profit. [2 marks]
What is q2?Show answer
Revenue is 50,000, and expenses are $20,000. Calculate the profit for the year. [2 marks]
What is q3?Show answer
Explain the difference between gross profit and profit for the year. [4 marks]
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