Income statements
5.3What the syllabus asks of you
- What profit is and why it is important: How a profit is made
- What profit is and why it is important: Importance of profit to private sector businesses, e.g. reward for risk-taking/ enterprise, source of finance
- What profit is and why it is important: Difference between profit and cash
- Income statements: Main features of an income statement, e.g. revenue, cost of sales, gross profit, profit and retained profit
- Income statements: Use simple income statements in decision- making based on profit calculations (constructing income statements will not be assessed)
Read the notes first
Chapter 5: Income statements
Drill this topic
All 8 questions on Income statements, untimed — answer on paper, then mark yourself against the mark scheme.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
8 questions
These are structured questions, answered in working rather than by picking an option, so they are not listed here one by one. The drill above puts each in front of you with its mark scheme to check against.