Incomes statement

1. What is another common name for the Income Statement?

• Balance Sheet

• Statement of Financial Position

• Profit and Loss Statement

• Cash Flow Statement

Which of the following is not included on an Income Statement?

• Rent expense

• Interest expense

• Gain on sale of assets

• Dividends paid

If a company has Revenue of $500,000 and Cost of Goods Sold (COGS) of $300,000, what is the Gross Profit?

• $200,000

• $800,000

• $300,000

• $500,000

If a company has Revenue of $500,000 and Cost of Goods Sold (COGS) of $300,000, what is the Gross Margin %?

• 40%

• 60%

• $200,000

• $800,000

A company’s Net Sales are $600,000, and Returns and Allowances amount to $30,000. What are the Gross Sales

• $630,000

• $570,000

• $600,000

• $30,000

If a company’s Tax Expense is $40,000 and its Income Before Taxes is $160,000, what is its Net Income?

• $200,000

• 160,000

• $120,000

• $40,000

Which of the following items is classified as Other Income or Non-operating Income?

• Salaries expense

• Interest income

• Marketing expense

• Sales revenue

A company has Operating Income of $120,000 and Interest Expense of $20,000. What is the company’s Income Before Taxes?

• $140,000

• $100,000

• $120,000

• $20,000

Which of the following transactions would increase Net Income on the Income Statement?

• An increase in operating expenses

• An increase in interest expense

• A decrease in taxes

• A decrease in gross profit

A company’s Revenue is $800,000, COGS is $400,000, and Operating Expenses total $250,000. What is the Operating Income?

• $150,000

• $550,000

• $400,000

• $250,000