Income Statements!

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent

Which one is not an expense?

• raw materials
• production costs
• commission received
• insurance

Deficit means

• you have more revenue
• you have more money out than money in
• you are in the black
• you are in debit

Which one is not income?

• interest received
• rent received
• GST paid
• service fees

Which document would you give to someone who still owes money?

• a receipt
• an invoice
• a cheque
• a credit note

what is the purpose of an income statement?

• calculate the bank balance
• calculate net assets
• calculate sales
• calculate net profit

How do you calculate gross profit?

• Sales - COGS
• Sales - NP
• COGS - Expenses
• COGS - NP

What does NP percentage show you?

• measures the profitability of the business
• measures your cashflow
• measures your bank balance
• measures your NP

Estimating or predicting your sales and costs can be limiting becuase

• estimates are not based on anything
• estimates are not used in business
• estimates can change over time
• estimates are not productive

Define economies of scale.

• you save money on buying bulk
•  with cost per unit of output generally decreasing with increasing scale
• the balance of the scales are equal
• total costs are spread evenly