5.3 Income Statements (Profit and Loss)

5.3 Profit and loss

• 5.3.1 What is profit and why it is important
• what profit is
• importance of profit to private sector businesses: reward for risk-taking, source of finance,
  measure of success, attract investors
  5.3.2 Statement of profit or loss
• main features of a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit
• make simple calculations based on a statement of profit or loss: revenue, cost of sales, gross
  profit, expenses, profit
• make decisions based on simple statements of profit or loss

Minimum Time = 10 minutes