Sales (Revenue) - Monies that the business has received from selling goods and/or services, Cost of Sales - The cost of goods that the business has bought for production or resale, taking account of opening/ closing stock levels, Opening Inventory - The value of unsold inventory at the start of the financial period, Purchases - The amount the business has spent on buying in raw materials or goods for resale to its customers., Closing Inventory - The value of unsold inventory at the end of the financial period, Gross Profit - Difference between the cost to the firm to buy the goods and the sales revenue from selling them on, Expenses - Expenses incurred by the business in the course of its normal operation, e.g. advertising, wages, electricity, Profit for the Year - The profit (or loss) made after all of the firm’s expenses have been deducted, Retained Profit - Profits kept back in the business for future investment, i.e. not distributed to owners or shareholders,

Income Statement Key Terms

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