S3 Accounting - Income Statement with full adjustments

Profit is the reward for___

• workers

• banks

• customers

• the sole trader

The bank manager, business ___ and managers are the main users of the income statement

• owners

• workers

• shops

• community

Which one of the following appears on an income statement?

• Owner's capital

• Expenses

• Cash at bank

• Machinery at cost

If Sales Revenue is £5,000 and Gross Profit £1,500, the Cost of Sales is ___

• £6,500

• £5,000

• £3,500

• £1,500

If Net Profit for the Year is £10,000, cost of sales is £4,000, expenses are £4,000 Net Sales Revenue will be ___

• £ 36 000

• £ 18 000

• £ 14 000

• £ 8 000

Gross profit is higher than profit

• True

• False

Sales Revenue minus Expenses equals Gross Profit

• True

• False

Depreciation is not included on the income statement

• True

• False

What is the main purpose of an Income Statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit for the year

Gross profit is calculated by...

• Sales Revenue - Total Costs

• Sales Revenue + Variable Costs

• Sales Revenue - Cost of Sales

• Sales Revenue - Fixed Costs