Understanding Profit and Loss

Angus runs a small bakery and wants to calculate his gross profit for the month. What is the formula he should use?

• Revenue - Cost of Goods Sold

• Revenue - Operating Expenses

• Revenue - Taxes

• Revenue - Net Profit

Vy runs a small bakery and wants to calculate her operating profit. How should she do it?

• Gross Profit - Operating Expenses

• Revenue - Cost of Goods Sold

• Net Profit + Taxes

• Revenue - Gross Profit

Cameron and Angus are reviewing their small business's financial statements. They want to know what another term for 'profit for the year' is?

• Gross Profit

• Operating Profit

• Net Profit

• Revenue

Ilia and Louis are reviewing their company's financial statements to determine its profitability. Which financial statement should they focus on?

• Balance Sheet

• Statement of Comprehensive Income

• Cash Flow Statement

• Statement of Financial Position

Vy runs a small bakery and wants to calculate her gross profit margin. How should she do it?

Anya runs a small bakery and wants to calculate her operating profit margin to understand her business's profitability. What is the formula for operating profit margin?

Amelia runs a small bakery and wants to calculate the profit for the year (net profit) margin. How should she do it?

Cameron and Ilia are running a small business. Which of the following is a way for them to improve their business's profitability?

• Increase costs

• Decrease revenue

• Reduce expenses

• Increase taxes

Amelia runs a small bakery and wants to understand her finances better. What is the main distinction between her bakery's profit and the cash she has on hand?

• Profit is the same as cash

• Profit includes non-cash items, while cash is the actual money available

• Cash is always greater than profit

• Profit is only recorded when cash is received

During a school business fair, Louis and Daisy are calculating the operating profit for their lemonade stand. Which of the following is not included in their calculation?

• Revenue

• Cost of Goods Sold

• Operating Expenses

• Taxes