A financial statement that compares revenues and expenses over a period (the accounting period) to show a company's operating results. Subtracting expenses from sales step by step, it shows gross profit, operating profit, ordinary profit (in Japanese statements), profit before income taxes and net income.
Japanese name: 損益計算書(P/L)
Income statement (P/L) appears in 3 practice questions across 1 topic, including Business Strategy and Accounting Basics.
Answer: B. ¥10 million
Gross profit is 80 − 50 = ¥30 million, and operating profit is 30 − 18 = ¥12 million. Ordinary profit (keijō rieki, used in Japanese financial statements) adds non-operating income such as interest received to operating profit and subtracts non-operating expenses such as interest paid: 12 + 1 − 3 = ¥10 million. Extraordinary gains and losses are one-off items such as gains on the sale of fixed assets or losses from disasters, and they are added and subtracted after ordinary profit to get profit before income taxes (10 + 2 − 4 = ¥8 million).
The profit for a period is shown by the income statement (P/L), and the change in cash by the cash flow statement.
Among a company's financial statements, which correctly des…The price of the equipment leaves as cash in the year of purchase, but in the income statement it is spread as an expense over the useful life through depreciation.
A semiconductor manufacturer bought new manufacturing equip…As an Amazon Associate I earn from qualifying purchases.
Depreciation ABC analysis Break-even point Contribution margin Five forces analysis Fixed cost Net present value (NPV) Patent Product life cycle Product portfolio management (PPM)