Lessons: Chapter 6 - Income Statement Basics

Important Links

Understand what "profit" means - MoneyWeek video: What Is Profit? 

Reading an income statement: Reading Income Statement

Video: How to Read a Profit and Loss Statement

Understanding an income statement - video from Investopedia: Understanding Income Statement 

Assignments

6.1: Which one of these items best represents the meaning of revenue earned by a company?   

  1. Revenue is the profit made by a company before taxes

  2. Revenue is the profit made by a company after taxes

  3. Revenue is the total amount of money collected by the company from customers when it sells its products

  4. Revenue is the total amount of money collected by the company from customers when it sells its products minus the cost of those items.

6.2: Which one of these items best represents the meaning of the earnings before taxes by a company?   

  1. Earnings before taxes is the revenue made by a company before taxes

  2. Earnings before taxes is the revenue made by a company after taxes

  3. Earnings before taxes is the amount of money a company takes in for selling its goods and services less the expenses associated with the items it sells

  4. Earnings before taxes is the company's total expenses less its revenue

6.3: How often do corporations release their earnings?

 

> Answers to Chapter 6 Assignments