What is an Income Statement?
An income statement shows how much a company earns (Revenue) and how much it spends (Expenses) to calculate Net Profit.
The key formula is:
👉 Net Profit = Total Revenue – Total Expenses
How to Play:
Drag each tile into Revenue or Expenses, then click Check Answers to see if your income statement is correct.
Income Statement Puzzle
Learn revenue, expenses and net profit by arranging tiles into the correct sections. Drag revenue items into Revenue and expense items into Expenses.
How to play: Drag each tile to Revenue or Expenses, then click Check Answers.
Tiles (drag me)
Income Statement
Why this helps
The income statement shows how a company turns revenue into net profit by subtracting expenses. In this game you learn to distinguish revenue items (sales, service income) from expense items (COGS, salaries, rent).
Net profit = Total Revenue − Total Expenses
The income statement is one of the three main financial statements used in fundamental analysis.
It helps investors understand how efficiently a company earns money, controls costs, and generates profit.
This puzzle game teaches you how revenue and expense items work together to create net profit.
✔ 1. What Is Revenue?
Revenue is the income earned from selling goods or providing services.
It represents the top line of the income statement.
Examples:
- Sales Revenue
- Service Income
Higher revenue generally indicates stronger business activity.
✔ 2. What Are Expenses?
Expenses are the costs of operating the business, such as production, salaries, rent, and interest.
Examples:
- Cost of Goods Sold (COGS)
- Salaries & Wages
- Rent Expense
- Interest
- Taxes
Expenses reduce profitability, so companies try to manage them efficiently.
✔ 3. How Net Profit Is Calculated
After subtracting all expenses from revenue, the company gets:
Net Profit = Total Revenue – Total Expenses
Net profit is also known as Bottom Line, Earnings, or Profit After Tax.
This game teaches you how different financial items affect a company’s profitability.
✔ 4. How This Game Builds Fundamental Knowledge
By arranging tiles correctly, you learn:
- Which items belong to revenue
- Which belong to expenses
- How expenses reduce profit
- How net profit is calculated in real financial statements
- The foundation of company profitability analysis
This simple puzzle prepares beginners for deeper financial analysis.