National 5 Bus Mgt Annual Report

What is the correct definition of Sales Revenue?

• The income received from selling goods and services
• The total net cash flow
• Amount of returns by customer
• Number of items sold by a company

The name given to the document which shows profit or loss made over a period of time is ... 

• Income Statement
• Profit or Loss Statement
• Cash Budget
• Break-even Chart

What type of business organisation must publish their Income Statement?

• Sole traders
• Partnerships
• Ltds
• Voluntary groups

What does an Income Statement NOT show?

• Sales Revenue
• Gross Profit
• Profit for Year
• Net worth of the business

What technology software would be used to produce an Income Statement?

• Spreadsheet
• Database
• Presentation software
• Word Processing

What is the correct definition of Gross Profit?

• Profit made from buying and selling goods and services
• Overall profit made by the company
• Profit to be shared amongst owners
• The largest profit possible

What is the missing item to be deducted when calculating Cost of Goods Sold?
Opening Inventory + Purchases  - ???

• Closing Inventory
• Returns
• Sales
• Rent

What would be NOT be deducted from Gross Profit in order to calculate Profit for Year?

• Salaries of Managers
• Purchases of Raw Materials
• Rent of Premises
• Heating and Lighting Costs

Income Statement looks at future profits and losses.

• True
• False
• Depends on type of organisation
• Depends on sector of industry

Spreadsheets are efficient in the Finance Department as ___________  reduce _______ of human error.

• Formulae + Risk
• Files  + Decrease
• Cells + Value
• Staff + Variety