Finance and Accounting Glossary
Income Statement Terms
The following is a list of terms and their definitions that are used in income statements.
Term |
Detail |
|---|---|
Cost of Goods Sold |
For a retail or wholesale business, it is the total price paid for the products sold plus the cost of having them delivered to the store during the accounting period. For a manufacturing firm, it is the beginning inventory plus purchases, delivery costs, material, labor, and overhead minus the ending inventory. |
Gross Profit |
This is the amount before operating expenses and federal taxes have been deducted. |
Income Before Taxes |
This is the operating income plus ... |
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