Income Statement Quiz

What is Revenue also known as?

• Expenses

• Sales

• Profit

• Loss

What does Cost of Goods Sold (COGS) refer to?

• Indirect costs like rent

• Direct costs of producing goods or services

• Total income from sales

• Final profit after expenses

What are Operating Expenses?

• Direct costs of goods sold

• Indirect costs like rent, salaries, and utilities

• Total income from sales

• Final profit after expenses

What does Other Income/Expenses include?

• Direct costs of goods sold

• Non-operating income or costs like interest and taxes

• Total income from sales

• Final profit after expenses

What is the purpose of an Income Statement?

• To determine a business's profitability

• To list a business's assets

• To show a business's cash flow

• To display a business's equity

Which of the following is an indirect cost?

• Cost of Goods Sold (COGS)

• Revenue

• Rent

• Sales

What type of report is an Income Statement?

• Financial report

• Marketing report

• Sales report

• Inventory report

What is a partnership in business?

• A single person running a business

• Two or more legal persons coming together to run a business

• A group of friends starting a club

• A company with many employees

What do partners usually create in a partnership?

• A friendship agreement

• A legally binding partnership agreement

• A social media page

• A sports team

What is the main purpose of forming a partnership?

• To make friends

• To run a business with a view to profit

• To organize events

• To create a community group