Business Cost and Income Analysis Quiz

What is the total operating cost for Year One, including bicycle maintenance, smartphone plan, and employee wages?

• $50

• $600

• $10,400

• $11,050

Which of the following is NOT included in the day-to-day operating costs for Year One?

• Bicycle maintenance

• Smartphone plan

• Employee wages

• Office rent

How is an income statement useful for a business?

• It forecasts future market trends.

• It lists all the assets of the company.

• It shows the company's profit or loss over a specific period.

• It provides a detailed list of all employees.

What is the expected income change from Year One to Year Three?

• From a profit of $7,150 to a loss of $3,250

• From a loss of $7,150 to a profit of $3,250

• From a profit of $3,250 to a loss of $7,150

• From a loss of $3,250 to a profit of $7,150

What does it mean when a business is 'in the red'?

• The business is breaking even.

• The business is highly profitable.

• The business is expanding.

• The business is experiencing a loss.