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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 Choice
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate net profit
- 3. Multiple Choice
Which of the following means money spent?
income
expense
net income
gross income
- 4. Multiple Choice
Which of the following means money received?
net loss
net gain
insurance
income
- 5. Multiple ChoiceExamples may include salaries, utilities, rent, insurance, and office supplies.RevenueExpenseNet IncomeNet Loss
- 6. Multiple ChoiceWhich one is not an expense?raw materialsproduction costscommission receivedinsurance
- 7. Multiple Choice
Gross profit is calculated by...
Revenue - Total Costs
Revenue + Variable Costs
Revenue - Cost of Sales
Revenue - Fixed Costs
- 8. Multiple Choice
Cost of sales is calculated by...
Opening stock + purchases - closing stock
Opening stock + purchases + closing stock
Adding up all of the stock bought during the year
Opening stock - closing stock
- 9. Multiple Choice
When expenses are greater than income?
expense
net loss
net income
net gain
- 10. Multiple ChoiceA Net Profit occurs if:Gross Profit is greater than expensesExpenses greater than Gross ProfitNone of the listed choices
- 11. Multiple Choice
If total expenses exceed total revenue, a net loss is reported.
True
False
- 12. Multiple Choice
Total profit made before all remaining expenses have been deducted:
Financial Ratios
Gross Profit
Net income
Operating Statement
- 13. Multiple Choice
Income = 1000
Cost of Goods Sold = 200
Expenses = 300
Gross Profit = ?
800
500
700
300
- 14. Multiple Choice
Income = 1000
Cost of Goods Sold = 200
Expenses = 300
Net Profit = ?
800
500
700
300
- 15. Multiple Choice
Net Profit = 500
Income = 2000
Expenses = 1000
Cost of Goods Sold = ?
1500
1000
3000
500
- Answer choicesTagsAnswer choicesTags