What is a Statement of Comprehensive Income?

• A Financial snapshot of the assets and liabilities of a business on a particular day.

• Summary of a Business's activities over a specific period of time.

• A record of a business's cash inflows and outflows over a period of time.

Which of the below is NOT found on a Statement of Comprehensive Income?

• Sales Revenue

• Fixed Assets

• Cost of Sales

• Expenses

Sally works for B&M as a sales assistant. Why might she be interested in the Statement of Comprehensive Income?

• She is a Manager - and wants to know if the business has achieved its target turnover and profit levels for the year.

• She is an employee - She wants to know if her job is safe and if she is likely to receive a pay rise.

Which statement below is true?

• SOCI shows how much revenue a business has received from sales of goods

• SOCI shows the value of all of the business's assets and liabilities

• SOCI shows the money coming in and out of a business

• SOCI shows how much money a business has not spent

Answer explanation

A SOCI also shows how much a business has spent and where the money was spent.

Gross Profit = Sales Revenue - ________

Net Profit (or loss) = Gross Profit - __________

SOCI for period 2021/22 for Sports Direct shows: Sales Revenue is £15,000 and the Cost of Sales is £3,000. Work out the Gross Profit?

• £10,000

• £14,000

• £12,000

• £3,000

SOCI for period 2016/2017 for Card Factory show: Gross Profit was £20,400. Expenses include Marketing: £1,500, Staff Wages: £14,500, Rent: £4,800. Work out Net Profit (or Loss).

• £400

• -£800

• -£400

• -£500

Which statement below is false?

• Gross Profit can be improved by decreasing the volume of sales

• Gross Profit can be improved by reducing the cost of sales

• Gross Profit can be improved by increasing the price of products

• Net Profit can be improved by reducing expenses

True of False: If total costs are greater than revenue, the enterprise will make a loss.

• TRUE

• FALSE