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1.
A company's sales, minus its cost of sales, is known as _______.
Gross profit. Gross profit is defined as sales (or revenue) minus cost of sales.
2.
A company's revenue may also be called by what other word?
Sales. For accounting purposes, it usually is called revenue.
3.
Under accrual accounting, a company records an expense when _______.
The company has incurred it. A company records an expense when it is incurred. Under accrual accounting, expenses are not necessarily incurred when cash is spent.
4.
The expenses directly incurred in creating the goods or services that a company sells are called _______.
All of the above. These are all different terms used for these expenses.
5.
'Sales' is another word for revenue.
True. The two normally mean the same thing, though 'revenue' is more commonly used.
