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- 1. Multiple ChoiceThe Income Statement lists a businesses:Assets and ExpensesOwner's Equity and RevenueRevenue, cost of goods and ExpensesExpenses and Net Assets
- 2. Multiple ChoiceWhich of the following is not a type of revenue?SalesCommissionService FeeRent paid
- 3. Multiple ChoiceA Net Profit occurs if:Gross Profit is greater than expensesExpenses greater than Gross ProfitNone of the listed choices
- 4. Multiple ChoiceAn expense is...money a business spends on the general operation of businessmoney the business owes to other organisations and peoplemoney Owed to the BusinessNone of the above
- 5. Multiple ChoiceNet Profit is:Assets less LiabilitiesGross Profit less ExpensesRevenue less LiabilitiesLiabilities less Assets
- 6. Multiple ChoiceAn income statement is also known as a 'Trading, profit/loss & Appropriation Account'?FalseTrue
- 7. Multiple ChoiceThe Financial year is 1st January - 31st DecemberTrueFalse
- 8. Multiple ChoiceWhen creating an income statement, the interest on a loan isrevenueliabilityan expensenone of the above
- 9. Multiple ChoiceAn income statement isA way of listing sales, cost of goods sold and expenses.Another word for 'Gross Profit'Same as the Balance SheetNone of the above.
- 10. Multiple ChoiceWhat happens to the retained profit in the income statement?Transferred and added to capital in balance sheetTransferred and added to liabilities in the balance sheetTransferred and subtracted to capital in balance sheetTransferred and subtracted to liabilities in balance sheet
- 11. Multiple ChoiceIf Sales = £100000 Cost of Goods = £25000, the Gross Profit will be:£75000£40000£70000£80000
- 12. Multiple ChoiceIf Gross Profit = £75000 Expenses = £72000, the Net Profit will be:£4000£3000£5000£2000
- 13. Multiple ChoiceIf Net Profit=£3000 and government tax=£1000 and dividends paid=£500 then retained profit is£1000£2000£1500£2500
- 14. Multiple ChoiceThe account in the Income Statement that calculates the Gross Profit is known as:The appropriation accountThe trading accountThe profit/loss accountsNone of the above
- 15. Multiple ChoiceThe account in the Income Statement that calculates the Net Profit is known as:The appropriation accountThe trading accountThe profit/loss accountsNone of the above
- 16. Multiple ChoiceThe account in the Income Statement that calculates the Retained Profit is known as:The appropriation accountThe trading accountThe profit/loss accountsNone of the above
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