Profit and Loss Quiz

What does a Profit and Loss statement show?

• Business profits and expenses

• Number of employees

• Future profits

• Business location

What is included in revenue?

• Sales and income

• Employee wages

• Office rent

• Advertising expenses

What is the formula for Gross Profit?

• Revenue – Cost of Goods Sold

• Revenue – Operating Expenses

• Revenue – Taxes

• Revenue + Expenses

What does COGS stand for?

• Cost of Goods Sold

• Cost of General Services

• Cost of Gross Sales

• Cost of Goods Saved

Which of the following is an operating expense?

• Rent

• Wages

• Marketing

• All of the above

What is Net Profit?

• Revenue minus all expenses

• Total sales

• Cost of goods sold

• Total money spent

If a company earns $5,000 in sales and spends $3,000 on expenses, how much is the profit?

• $8,000

• $2,000

• $3,000

• $5,000

Which of the following is NOT included in a Profit and Loss statement?

• Revenue

• Expenses

• Assets

• Net Profit

What does a business need to do to increase profit?

• Increase expenses

• Reduce revenue

• Increase revenue or reduce expenses

• Stop selling products

Which of the following is an example of revenue?

• Rent income

• Marketing cost

• Employee salaries

• Utility bills