Revenue and Expenses Quiz

What is the definition of cost?

• The dollar amount spent to make a product or purchase

• The amount of profit made by the business

• The size of the business's office space

• The number of employees in the business

Can you provide an example of an expense in a business?

• Salaries

• Revenue

• Hanging out with co-workers

• Profit

How do you calculate profit in a business?

• Adding total expenses to total revenue

• Dividing total expenses by total revenue

• Subtracting total costs and expenses from revenue

• Multiplying total expenses by total revenue

What is the definition of revenue?

• Money received from the sale of a product or service

• the amount spent to make a product or purchase

• type of spending to make the product, perform the service or run the business

• Money left over after all expenses are paid

Why is it important for a business to understand its costs?

• To understand costs of other businesses

• To make decisions based on emotions

• To make informed decisions and set prices.

• To ignore costs and set random prices

What are some common expenses for a small business?

• Entertainment expenses

• Rent, utilities, salaries, supplies, marketing, insurance

• Legal fees

• Travel expenses

If a business has a revenue of $500 and expenses of $300, what is the profit?

• $100

• $200

• $400

• $50

How can a business increase its revenue?

• By implementing outdated marketing strategies

• By ignoring operational efficiency and customer base

• By decreasing customer base and product lines

• By implementing marketing strategies, expanding product lines, increasing customer base, and improving operational efficiency.

What are some ways a business can reduce its expenses?

• Increasing expenses

• Paying suppliers more

• Ignoring expenses

• Negotiating better deals with suppliers

In plain language, how would you calculate profit?

• The amount of money spent on marketing

• Revenue minus both costs and other expenses

• The total revenue of a business

• The number of products sold by a business