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- Multiple ChoicePlease save your changes before editing any questions.
An accounting report that is used to show revenue and expenses is the
Loss and Profit Statement
Reveune and Expenses Statement
The Profit or Loss Statement
The Income Statement
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The Qualitative characteristics that need to be considered when preparing an Income Statement are...
comparability and understandability
relevance and reliability
relevance and understandability
comparability and relevance
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The main purpose of an Income statement is to...
calculate profit or loss
provide information in an informative manner
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Profitability is....
Revenue less expenses
When a business makes a profit
a comparison of profit earned with an investment made
when revenue is higher than expenses
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Return on Assets is ....
profit greater than assets
assets greater than profit
a comparison of total profit to total assets
a measure of the owner's investment
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ROI stands for
Return on Interest
Return on other than investment
Return on Owner's Investment
Return on Owner's Interest
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COGS stands for
cost of goods sales
cost of goods serviced
cost of goods sold
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The difference between sales and Gross profit is
cost of sales
cost of goods sold
adjusted gross profit
gross profit
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After Gross profit you have...
less Other Expenses
add other Revenue
Adjusted Gross Profit
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Cartage Outwards is part of COGS
True
False
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Cartage Inwards is not part of COGS
True
False
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A cost of delivering inventory to customers is
cartage inwards
cartage outwards
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A cost incurred in bringing inventory into the business is
cartage outwards
cartage inwards
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A reduction in the outflow payable to libilities is a
discount expense
discount revenue
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A reduction in the inflow from accounts receivable is a
discount expense
discount revenue
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Sales $88 000 Cost of sales $42 000 means GP is
44 000
48 000
46 000