Income Statement (Word Scramble)

1. Amounts earned through a company's main activities.

2. A retailer's revenues.

3. Costs used up in order to earn revenues.

4. The __________ basis of accounting is better than the cash basis for measuring profitability in a limited time period.

5. The expense associated with debt.

6. At the end of the accounting year, income statement accounts are ______________.

7. Sales minus the cost of goods sold is gross _________.

8. Selling, general and administrative (SG&A) expenses are referred to as _____________ expenses.

9. The heading of the income statement discloses the _________ of time covered.

10. An accounting year beginning on July 1 and ending on June 30 is referred to as a _________ year.

11. Earnings per share must be reported on the income statement when a corporation's stock is publicly ___________.

12. An increase in net assets from a peripheral activity.

13. On a multiple-step income statement, interest expense is reported as a ________________ or other expense.

14. The elimination of an entire subsidiary of a corporation will result in reporting an amount on the income statement described as _______________ operations.

15. If a corporation sells a plant asset for less than its ___________ value, the difference will be reported as a loss on the income statement.

16. The income statement is also known as the statement of ____________.

17. The largest expense on a retailer's income statement is usually its _____ of goods sold.

18. Accrual accounting requires that expenses be __________ with revenues.

19. Changes in accounting ___________ such as depreciation are not viewed as errors.

20. The few gains or losses that are not included in net income will be reported as part of other _____________________ income.