Business Income and Expenses Quiz

What is income in a business?

• Money spent on goods

• Money earned from selling goods or services

• Number of employees in a company

• Total money borrowed from a bank

Which of the following is an example of income?

• Rent paid for office space

• Sales revenue from products

• Utility bills

• Employee salaries

What are expenses in a business?

• The money a business earns

• The money a business spends to operate

• The number of products sold

• The amount of profit earned

Which of the following is an example of an expense?

• Profit from sales

• Loan received from a bank

• Electricity bill

• Income from investments

What happens when expenses are higher than income?

• The business makes a profit

• The business breaks even

• The business faces a loss

• The business grows faster

What is the formula for calculating profit?

• Profit = Income + Expenses

• Profit = Income – Expenses

• Profit = Expenses – Income

• Profit = Income × Expenses

Which of these can increase a company’s income?

• Reducing marketing expenses

• Selling more products or services

• Increasing employee salaries

• Paying rent on time

Which type of expense is directly related to producing goods?

• Fixed expense

• Direct expense

• Unnecessary expense

• Irrelevant expense

If a business earns $10,000 and spends $7,000, what is the profit?

• $17,000

• $3,000

• $7,000

• $10,000

Why is it important for businesses to track income and expenses?

• To calculate profits and make financial decisions

• To hire more employees

• To increase expenses

• To make products more expensive