Financial Statements

The section of the Income Statement in which gross profit is claculated is known as:

• Profit & Loss Section

• Trading Section

• Statement of Financial Position

• Statement of Account

1. A statement of financial position shows the ________________ of the business at a certain date.

• 1. Assets and Liabilities

• Revenue and Expenses

• Only Capital

• Only Assets

The __________ is the positive difference between the selling price and the cost of goods sold.

• Net Profit

• Gross Profit

• Net Loss

• Gross Loss

Cost of sales = ___________ + Purchases – Closing inventory

• Salary

• Sales

• Opening Inventory

• Purchase Return

Profit for the year = Gross profit plus Other income minus __________ .

• Assets

• Liabilities

• Expenses

• Revenue

A ________ business is one which buys and sells goods.

• Service

• Trading

1. At the end of his first year of trading, Rashid provided the following information.

2. Revenue $72,500; Purchases $49,700;
   Closing inventory $4,800; Carriage inwards $1,150; Carriage outwards $2,950

What was Rashid’s gross profit?

• $22,800

• $24,650

• $26,450

• $27,600

__________

are assets which are obtained for use and not for resale, which help the business earn revenue.

• Current Assets

• Non-Current Assets

• __________ are amounts which are due for repayment within the next 12 months.

• Current Liabilities

• Non-Current Liabilities

• __________ are short-term assets and their values are constantly changing.

• Non-Current Assets

• Current Assets