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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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