T-level Finance, Statements, Margins and tax

What does the Statement of Profit and Loss show?

• The financial position of a company at a given point in time

• The company's profit or loss over a specific period

• The cash inflows and outflows of a business

• The value of assets and liabilities

Which of the following is NOT a component of the Statement of Profit and Loss?

• Revenue

• Gross Profit

• Equity

• Net Profit

The Balance Sheet is also known as:

• Income Statement

• Profit and Loss Statement

• Statement of Financial Position

• Cash Flow Statement

Which of the following is an example of a non-current asset?

• Inventory

• Cash at bank

• Machinery

• Accounts receivable

What is the formula for Gross Profit Margin?

• (Net Profit ÷ Revenue) × 100

• (Gross Profit ÷ Revenue) × 100

• (Total Assets ÷ Total Liabilities) × 100

If a company has sales revenue of £50,000 and a cost of sales of £30,000, what is the Gross Profit?

• £20,000

• £30,000

• £50,000

• £80,000

Net Profit is calculated as:

• Revenue - Cost of Sales

• Revenue - Expenses

• Revenue - (Cost of Sales + Operating Expenses)

• Revenue - Taxes

If a company has a Gross Profit of £40,000 and Operating Expenses of £15,000, what is the Net Profit?

• £25,000

• £40,000

• £15,000

• £55,000

The Break-Even Point in units is calculated using the formula:

• Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit)

• (Selling Price per Unit ÷ Fixed Costs) × 100

• Revenue - Expenses

• Fixed Costs × Selling Price

A business has Fixed Costs of £10,000, a Selling Price per unit of £25, and a Variable Cost per unit of £15. How many units must be sold to break even?

• 10 units

• 100 units

• 500 units

• 1000 units