Business Financials Quiz

In a profit and loss statement, which of the following is deducted from gross profit to calculate operating income?

• Taxes

• Operating Expenses

• Interest

• Dividends

Which of the following is considered an operating cost?

• Interest Expense

• Depreciation

• Cost of Goods Sold

• Rent

What is the difference between net income and gross income?

• Net income includes taxes, gross income does not.

• Gross income includes all expenses, net income does not.

• Net income is after all expenses, gross income is before expenses.

• Gross income is after taxes, net income is before taxes.

Which of the following is a liability on a balance sheet?

• Inventory

• Retained Earnings

• Accounts Payable

• Cash

What is the selling price if a product costs $50 to produce and the desired profit margin is 20%?

• $55

• $60

• $70

• $75

In a profit and loss statement, which of the following represents the total revenue minus the cost of goods sold?

• Net Income

• Gross Profit

• Operating Income

• Net Profit

Which of the following is NOT included in operating costs?

• Salaries

• Utilities

• Advertising

• Income Tax

If a company has fixed costs of $10,000, a selling price of $50 per unit, and variable costs of $30 per unit, what is the break-even point in units?

• 200 units

• 300 units

• 400 units

• 500 units

Which of the following is a current asset on a balance sheet?

• Equipment

• Accounts Receivable

• Long-term Investments

• Mortgage Payable

If a product's selling price is $100 and the cost price is $70, what is the profit percentage?

• 20%

• 30%

• 40%

• 50%