1. An income statement a snapshot of what a company : 2028826
1. An income statement is a snapshot of what a company owns (called assets) and what it owes (called liabilities) at a point in time.
2. The difference between assets and liabilities of a company is referred to as owner’s equity.
3. A balance sheet contains more marketing-related information than an income statement.
4. Cost of goods sold represents the revenue a firm receives from goods sold to customers.
5. Depreciation is an unusual expense because it does not involve an actual cash expense.
6. Subtracting depreciation and net interest expense from the firm’s operating profit reveals the firm’s taxable income.
7. The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.
8. All successful organizations have the same inventory turnover ratio.
9. While calculating the accounts receivable turnover ratio, sales to buyers using credit cards like MasterCard and Visa are counted as credit sales because the seller is providing credit to the buyer who buys without cash.
10. Receivables are collected credit sales.