How to Prepare an Income Statement - Choctaw Nation Small Business Development

Name*

First Last

Email*

1. What is the first thing that goes on every income statement?*

2. Sales Revenue is what you earn from making sales through product and services.*

3. _____ is the profit you have before you deduct additional expenses.*

4. The biggest expense on an income statement will be either the Cost of Goods Sold or the Cost of Services Sold.*

5. Gross Profit minus Total Operating Expense equals _____.*

6. How does one calculate “Income Before Income Taxes”?*

7. Income Before Income Taxes minus Income Tax Expense equals Net Income.*

8. Operating Expenses are the expenses related to the daily operations of a business.*

9. When creating an income statement your Debit and Credit Totals will never equal.*

10. Income Before Income Taxes _____ by the Tax Rate equals Income Tax Expense.*