Spreadsheet 2: Profit and Loss terminology

What is one way a business can measure its success?

• By calculating its profit or loss

• By the number of products sold

• By the amount of advertising

• By the number of employees

What is profit?

• The total amount of money generated

• Expenses minus revenue

• Revenue minus expenses

• The total amount of money spent

What are the two key components needed to understand profit?

• Profit and loss

• Expenses and loss

• Revenue and profit

• Revenue and expenses

What is revenue?

• The total amount of money a business spends

• The total amount of money a business generates

• The profit a business makes

• The loss a business incurs

Over what period is revenue calculated?

• A day

• A set period of time

• A random period of time

• A month

What are expenses?

• The money spent to generate revenue

• The loss a business incurs

• The total amount of money a business generates

• The profit a business makes

Which of the following is NOT an example of an expense?

• Equipment

• Advertising

• Paying workers

• Revenue

How do you calculate profit?

• Expenses minus revenue

• Revenue minus expenses

• Total revenue

• Total expenses

If a product is sold for $100 and costs $40 to make, what is the profit?

• $60

• $40

• $140

• $100

What happens if your revenue is greater than your expenses?

• You make a profit

• You make a loss

• You break even

• You need to spend more