ACCOUNTING 1-2 Quiz

The total amount of money a business earns from selling products or services before expenses are deducted is called __________.

• Net profit

• Sales revenue

• Gross margin

• Inventory

After subtracting discounts, returns, and allowances, the remaining revenue is referred to as __________.

• Net sales

• Cost of goods sold

• Liabilities

• Balance sheet

The __________ shows a company's financial performance, including income, expenses, and profit over a period.

• Profit and loss report

• Inventory

• Intangible assets

• Fixed assets

The total costs directly related to producing goods, including materials and labor, are recorded under __________.

• Owner's equity

• Cost of goods sold

• Net sales

• Gross margin

The difference between net sales and the cost of goods sold is called __________, which represents the company's basic profitability.

• Gross margin

• Liabilities

• Inventory

• Fixed assets

The total earnings of a business before deducting expenses like rent, salaries, and taxes are known as __________.

• Gross profits

• Net profit

• Sales revenue

• Overhead

After all expenses, including overhead and taxes, are deducted from gross profit, the remaining amount is called __________.

• Net profit

• Balance sheet

• Cost of goods sold

• Owner's equity

Expenses that are not directly tied to production, such as rent, utilities, and administrative costs, are classified as __________.

• Gross margin

• Overhead

• Assets

• Inventory

The __________ provides an overview of a company's income and expenses to determine whether it made a profit or loss.

• Profit and loss report

• Balance sheet

• Fixed assets

• Owner's equity

The factory keeps a record of raw materials and finished goods under its __________ account.

• Inventory

• Intangible assets

• Fixed assets

• Net sales