Sales revenue - Money received by the business from goods or services, Cost of Goods Sold - Costs directly related to producing goods/services e.g. cost of raw materials, Opening inventory - Value of stock/goods at the beginning of the year, Purchases - The amount the business has spent on stock/raw materials for the year, Closing inventory - Value of stock/goods at the end of the year, Gross profit - Amount of money left over after cost of goods sold has been deducted from sales revenue, Expenses - All of the other expenses of the business (not including stock/raw materials), Net profit before tax - Final profit for the year once all expenses have been deducted, Operating income - The amount of profit from a business' operations, after deducting operating expenses, e.g. wages, depreciation, and cost of goods sold, Non-current asset - A business' long-term investments for which the full value will not be realised within the accounting year., Current liabilities - Amounts due to be paid to creditors (normally) within twelve months.,

Statement of Income - Key Terms

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