ACC Profit Quiz

Which of these would not be included when calculating profit?

• Wages

• Insurance

• Advertising

• Supplies

Calculate profit given the following: service fees $100 000,

accounts receivable $14 000,

dividends received $5 000

and expenses $35 000

• $46 000

• $70 000

• $84 000

• $154 000

Identify the correct accounting concept described below:

"The lifetime of a business is divided into equal time periods, usually one year"

• Monetary Measurement

• Going Concern

• Accounting Entity

• Accounting Period

All of the statements regarding profit below are correct, except for?

• Profit is the same as cash in the bank

• Profit is the return for the owner from their investment in the business

• Profit is calculated as revenue minus expenses

• Profit should be compared to other investment options, such as interest rates and shares

Identify the most likely impact on profit from an increase in spending on advertising.

• Profit will definitely increase

• Profit will definitely decrease

• Profit will increase if the increase in revenues exceeds the increase in expenses

• Profit will only increase if spending is on social media advertising

All of the following statements regarding a decrease in prices are correct except for?

• If the decrease in prices increases revenue, then profit will increase.

• Revenue can be calculated as price x quantity sold

• The decrease in prices may increase or decrease revenue

• The decrease in price has no impact on profit

Identify which of the users listed would be interested in the Statement of Profit or Loss? (More than one may be selected)

• Bank Manager

• Employee

• Owner

• Australian Tax Office

All of the following are components of the Profit or Loss Statement, except for?

• Profit

• Revenue

• Capital

• Expenses

Calculate profit given the Statement of Profit or Loss shown.

• Profit $31,700

• Profit $1,700

• Loss ($31,700)

• Loss ($1,700)

Calculate the total revenues given the Statement of Profit or Loss shown.

• $14,800

• $27,600

• $70,000

• Cannot be determined given the information