Accounting Tutorial: Financial Statements Chapter 12




Income Statement

Statement of Retained Earnings

Balance Sheet

1. Most businesses report their financial condition with _____ forms.

1 2 3

2. An income statement reports?

Assets and liabilities of the company Revenue, cost of goods sold and expenses Stockholders' Equity

3. To calculate cost of goods sold, you would?

Take beginning inventory add purchases and subtract ending inventory Take ending inventory add purchases and subtract beginning inventory Take sales subtract beginning inventory and add ending inventory.

4. Sales minus cost of goods sold equals?

Net profit
Gross profit
Cost of merchandise available for sale