HBM Income Statement

Labelling

What are the missing headings?

Drag labels to their correct position on the image

Payments

Total Profit/Loss

Cash Budget

Money going out

Closing Balance

Receipts

Total Sales

Gross Profit

Money coming in

Opening Balance

Multiple Choice

Closing Balance = ?

• Opening balance + total receipts - total payments

• Total receipts - total payments

• Opening balance - total payments

Multiple Choice

Cash flow solution: Increase advertising or sales promotion

What is a possible justification to this solution?

• It will reduce the cost of purchases

• It will reduce the number of people who owe the business money

• Will help to cover immediate cash flow problems

• Will increase sales meaning more cash coming in

Reorder

Cash Budget headings - what is the correct order?

• Opening Balance

• Receipts

• Cash Available

• Payments

• Closing Balance

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Income Statements

Replace this with a sub-header that can be in multiple lines. ​

Annual Accounts

There are 2 main financial statements used (called Final Accounts):

​

• Income Statement​

• Statement of Financial Position

Multiple Choice

Final accounts are made up of:

• Income Statement & Statement of Financial Position

• Cash Budget & Income Statement & Statement of Financial Position

• Cash Budget & Statement of Financial Position

• Cash Budget & Income Statement

Income Statement

• The Income Statement records how much money is made from selling goods against how much they cost to make. This is called The GROSS PROFIT. ​

• The PROFIT FOR THE YEAR is calculated by taking Expenses away from the GROSS PROFIT. ​

Dropdown

The ​

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records how much money is made from selling goods against how much they cost to make. This is called The ​

Select answer

. ​

​

The ​

Select answer

is calculated by taking ​

Select answer

away from the GROSS PROFIT. ​

Page 133

Look at example Income Statement in your textbook.

Multiple Choice

Gross profit is calculated by...

• Revenue - Total Costs

• Opening balance + Cash available

• Revenue - Cost of Sales

• Revenue - Fixed Costs

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

Categorize

Options (12)

opening inventory

purchases

closing inventory

wages

insurance

advertising

Opening Inventory

Wages

Purchases

Rent

Advertising

Insurance

Organise these options into the right categories

Cost of Sales

Expenses

Multiple Choice

What is the purpose of an income statement?

• calculate the bank balance

• calculate closing balance

• calculate net assets

• calculate profit for the year

Multiple Select

How do you calculate profit for the year

• Gross profit - expenses

• Sales - gross profit

• Gross profit - variable costs

• Revenue - indirect costs

Multiple Choice

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

Reorder

Income Statement - what is the correct order?

• Sales Revenue

• Cost of Sales

• Gross Profit

• Expenses

• Profit for the Year

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

Fill in the Blank

From the Income Statement what is the missing information for entry A?

Fill in the Blank

From the Income Statement what is the missing information for entry C?

Fill in the Blank

From the Income Statement what is the missing information for entry D?

,

Fill in the Blank

From the Income Statement what is the missing information for entry B?

Multiple Choice

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

• 800

• 500

• 700

• 300

Multiple Choice

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Profit for the year = ?

• 800

• 500

• 700

• 300

Multiple Choice

How could a business improve its 'profit for the year' figure?

• reduce expenses

• increase cost of sales

• reduce sales

• increase expenses

Multiple Select

If a business has made a loss, what action can it take to rectify this?

• Increase sales revenue by advertising more

• Reduce expenses by reducing salaries

• Reduce costs of production by finding a cheaper supplier

• Negotiate with the government to pay less tax