- Single-step statement (10): all revenues are grouped together, all expenses are grouped together
- Multi -step statement (11)
- Include gross profit
- Multi-step income statement
- Gross profit (12)
- Revenue subtracted cost of producing product or service
- Operating profit (13)
- Gross profit – expense for selling/management/general
- Revenue: total income generated by the sale of goods or services resulting from its main operating activities before subtracting any expenses.
- Gain” another type of revenue that refer to incidental and non-recurring transactions.
- Net asset value = total value of entities asset – total value of its liabilities, represent net value of an entity
- Gross profit = revenue – cost of goods sold
- Simply put your gross revenue is your earnings before you deduct your expenses and your net revenue is your earnings after you subtract your expenses.