Practice exercise 3 1. Revenue minus 'X' = Gross Profit. 'X' is: al cost of sales b) expenses c) finance costs d) tax. Total: 30 marks (1 mark) 2. For a public limited company, which tax is deducted from 'profit before tax' to get the 'profit for year' figure? a) Business rates b) Corporation tax c) Income tax d) VAT 3. What is meant by the term "income statement? (1 mark) (3 marks) 4. Identify two purposes of an income statement. (2 marks) 5. What is the difference between operating profit and profit for the year? (4 marks) 6. Identify the two ways in which profit is utilised. (2 marks)