Complete the following statements about an income statement: 1. The first section of an income statement is the ____, which represents the total money earned from sales. 2. To calc... Complete the following statements about an income statement: 1. The first section of an income statement is the ____, which represents the total money earned from sales. 2. To calculate gross profit, you need to subtract the ____ from the total revenue. 3. The _____ section of the income statement includes expenses such as salaries, rent, and utilities.
Understand the Problem
The question is asking to complete statements about an income statement, which is a financial document that outlines a company's profitability. It involves identifying sections of the income statement, calculations for gross profit, and understanding the categorization of expenses.
Answer
1. revenue, 2. cost of goods sold (COGS), 3. operating expenses
The final answer is: 1. revenue, 2. cost of goods sold (COGS), 3. operating expenses.
Answer for screen readers
The final answer is: 1. revenue, 2. cost of goods sold (COGS), 3. operating expenses.
More Information
An income statement includes key sections like revenue, cost of goods sold, and operating expenses to evaluate the financial performance of a company.
Tips
A common mistake is confusing total revenue with net income. Ensure you understand each section of the income statement.
Sources
- Gross Profit: What It Is & How to Calculate It - Investopedia - investopedia.com
- Income Statement The income statement is a financial ... - Chegg - chegg.com
AI-generated content may contain errors. Please verify critical information
