Uncovering the Secrets of P&L Statements: A Fun Financial Advent

What does GMV stand for?

• Gross Merchandise Value
• General Market Value
• Gross Market Value
• General Merchandise Value

Answer explanation

GMV stands for Gross Merchandise Value, representing the total value of merchandise sold over a given period of time.

GMV includes the total sales value of merchandise sold over a certain period of time.

• True
• False

Answer explanation

GMV measures the total value of goods sold through a marketplace during a specific time frame, not accounting for expenses, returns, or discounts.

Which of the following best describes Fixed Rental?

• A rental fee that varies month to month
• A rental fee that remains constant
• A rental fee based on tenant's sales
• A rental fee that includes maintenance costs

Answer explanation

Fixed Rental refers to a set rental fee agreed upon in a lease that does not change regardless of other factors such as the tenant's sales performance.

Fixed Rental is dependent on the business performance of the tenant.

• True
• False

Answer explanation

Fixed Rental is not influenced by the tenant's sales or business performance; it remains the same throughout the lease term.

Variable Rental is best described as:

• A rental fee that fluctuates based on a formula
• A rental fee that remains the same
• A rental fee that includes utilities
• A rental fee that is prepaid annually

Answer explanation

Variable Rental changes based on certain criteria, often linked to the tenant’s sales or revenue.

Variable Rental is typically tied to the tenant's sales performance.

• True
• False

Answer explanation

Variable Rental often depends on the tenant's sales, meaning higher sales could result in higher rental fees and vice versa.

What is typically included in Food & Beverage Management Sales?

• Only food sales
• Only beverage sales
• Both food and beverage sales
• Neither food nor beverage sales

Answer explanation

Food & Beverage Management Sales encompass the total revenue from selling both food and beverages within an establishment.

Food & Beverage Management Sales can also include revenue from catering services.

• True
• False

Answer explanation

Food & Beverage Management Sales may also account for income generated from catering services and other related activities.

What does EBITDA stand for?

• Earnings Before Interest, Taxes, Depreciation, and Amortization
• Earnings Before Income, Taxes, Depreciation, and Allocation
• Earnings Before Interest, Taxes, Depreciation, and Allocation
• Earnings Before Income, Taxes, Depreciation, and Amortization

Answer explanation

EBITDA is a financial metric used to assess a company's operational performance by looking at earnings before accounting for interest, taxes, depreciation, and amortization.

EBITDA is a measure of a company's overall profitability.

• True
• False

Answer explanation

EBITDA provides insight into a company’s profitability from its core operations by excluding non-operational expenses like interest and taxes.