Income Statments

How do you calculate sales revenue?

• = selling price + total costs

• =selling price x units

• = selling price + units

• = selling price - cost of sales

Sales revenue is the money that a business receives from selling goods and services.

• True

• False

Complete the formula - cost of sales = (opening stock + .....................) – closing stock

Complete the formula - Gross profit = ..................... - cost of sales

Complete the formula - Net profit = Gross profit - .................

What is depreciation?

• It is the increase in value of an asset over time

• It is the fall in value of an asset over time

• When you sell an asset

• When you lease an asset

If a business has a high gross profit but a low net profit - what does this mean?

• Its expenses are low

• Its expenses are too high

• Its sales revenue is low

• Its cost of sales is low

If a business is selling a product at £30 and they sell 300 units. What is their sales revenue?

• £8,000

• £11,000

• £10,000

• £9000

If a business has an opening inventory of £2000, they make purchases of £1000, their closing inventory is £1000. What is their cost of sales?

• £4000

• £2000

• £3000

• £5000

If a business has a gross profit of £12,000 and total expenses of £8000, what is their net profit?