10 questions
The Income Statement lists a businesses:
Assets and Expenses
Owner's Equity and Revenue
Revenue, cost of goods and Expenses
Expenses and Net Assets
Which of the following is not a type of revenue?
Sales
Commission
Service Fee
Rent paid
A Net Profit occurs if:
Gross Profit is greater than expenses
Incorrect Commission
Expenses greater than Gross Profit
Incorrect Service Fee
None of the listed choices
An expense is…
money a business spends on the general operation of business
money the business owes to other organisations and people
money Owed to the Business
None of the above
Which of these does a balance sheet show
How much gross profit a business made
Its total revenue
What a business owns and owes
How much it paid in rent
What period of time does a balance sheet cover?
One quarter
One moment in time
One year
One tax year
Which of these is a liability?
Cash in bank
Money owed to other business (creditors)
Stock
Machinery
Gross Profit Refers to
money remaining after all expenses are paid
money remaining after taxes have been paid
Sales less cost of goods sold
None of the above
How can a business improve the Net Profit Margin?
Finding a more expensive supplier with better quality
Reducing the wage bill
Raising electricity usage
None of the above
What is a current asset?
Something a firm owes that must be paid in > 1 year.
Something a firm owns that can turn into cash in > 1 year.
Something a firm owns that you can turn into cash <1 year.
None of the above