Practice question · Put in order
Order the income-statement waterfall from top to bottom.
- Minus COGS = Gross profit
- Minus interest = EBT
- Minus tax = Net profit
- Revenue
- Minus operating expenses = EBIT
Hints
- Each step removes one layer of cost from the one above.
- Government takes its share last.
Show the answer
- Revenue
- Minus COGS = Gross profit
- Minus operating expenses = EBIT
- Minus interest = EBT
- Minus tax = Net profit
Why
Each line peels away a cost layer: production, operations, financing, government. The waterfall is the P&L's visual logic.
Practise The Income Statement
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
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