| A | B |
|---|
| Bottom line | Net outcome |
| Earnings statement | Another name for an income statement |
| Competitive analysis | The process of comparing a business’s income statement with that of its competitors to see how it is doing by industry standards |
| Expense | Money that a business spends |
| Cost of goods sold/Cost of sales | The amount of money a business pays for the product it will sell |
| Financial ratio | The comparison of two numbers from a business’s financial statement; used as a tool by businesses to see relationships between numbers |
| Creditors | Individuals or businesses to whom a business owes money or from whom it wants to borrow money |
| Gross profit | Money left after the cost of goods expense is subtracted from total income |
| Cash flow statement | A financial summary with estimates as to when, where, and how much money will flow into and out of a business |
