Basic ecomonic terminology. Искренко Э.В - 45 стр.

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                 INCOME STATEMENT

      1. Income statement — a financial statement that summarizes a
firm’s revenues and expenses and shows the flows that occurred
during a specified accounting period.
      2. Financial statement — a type of financial statement that
summarizes a firm’s financial position on a particular date in terms
of its assets, liabilities, and owner’s equity.
      3. Gross sales — the total money amount of all goods and
services sold during the accounting period.
      4. Net sales — the actual money amount received by a firm for
goods and services it has sold, after adjustment for returns,
allowances, and discounts.
      5. Cost of goods sold — the cost of the goods a firm has sold
during an accounting period; is equal to beginning inventory plus
net purchases less ending inventory.
      6. Gross profit of sales — a firm’s net sales less the cost of
goods sold.
      7. Operating expenses — those costs that do not result directly
from the purchase or manufacture of products a firm sells.
      8. Selling expenses — costs that are related to the firm’s
marketing activities.
      9. General expenses — costs that are incurred in maintaining a
business.
      10. Value added — the value of the product sold by a firm less
the value of the goods purchased and used by the firm to produce
the product; is equal to the revenue used for wages, rent, interest
and profits.
      11. Net income — the profit earned (or the loss suffered) by
a firm during an accounting period, after all expenses have been
deducted from revenues.
      12. Statement of cash flows — the statement that shows the
movement of money into and out of an organization.
      13. Financial ratio — a number that shows the fractional or
percentage relationshi p between two elements of a firm’s financial
statements.



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