Accounting terms 2

Income Statements used to be called

• Balance Sheets

• Profit Sheets

• Trading and Profit and Loss Accounts

• Income Sheets

What is another term for stock?

• Inventory

• Stationary

• Stationery

• Raw materials

What is Sales Revenue less Cost of Sales....?

• Net Profit

• Accrual

• Expenses

• Gross Profit

What is the formula for Gross Profit Percentage?

• Gross Profit/Cost of Sales x 100

• Gross Profit/ Sales x 100

• Net Profit/Sales x 100

• Net Profit/Gross Profit x 100

Sales Revenue £300,000

Gross Profit £30,000

Net Profit £3,000.

Calculate Gross Profit Percentage

• 30%

• 10%

• 3%

• 1%

What is the other term for Fixed Assets?

• Non-Current Assets

• Current Assets

• Working Capital

• Debenture

What is depreciation?

• The loss in value of stock

• The loss in value of non-current assets

• The loss in value of market share

• The loss in value of synergy

What is an example of a non-current asset?

• Raw materials

• Partly finished goods / Work in Progress

• Finished goods

• Delivery vehicle

What is an exceptional item

• Large item, in the normal running of the business eg redundancy payments

• Repeating item, in the normal running of the business eg rent

• On-going item, in the normal running of the business eg training

• Small item, in the normal running of the business eg exit desk

What is an extraordinary item?

• A large item, not in the normal running of the business eg selling a large plot of land

• A small item, in the normal running of the business eg selling a vehicle

• An ordinary item, in the normal running of the business eg wages

• A small item,in the normal running of the business eg selling a biscuit