Untitled Quiz

Which section of the Income Statement shows revenue minus cost of goods sold?

• Net income

• Gross profit

• Operating expenses

• Equity

EBIT stands for …

• Earnings Before Interest and Taxes

• Equity Before Income Tax

• Earnings Based on Internal Transactions

• Expenses Before Interest and Taxes

Which item is considered a non-operating income?

• Sales revenue

• Dividend received

• Service income

• Interest expense

The “top line” of an Income Statement refers to …

• Net profit

• Operating income

• Total revenue

• Gross margin

Which of the following would increase net income?

• Higher operating expenses

• Lower tax expense

• Higher interest expense

• Higher depreciation

Fill in the blank: “The Income Statement reflects performance on an ______ basis, not cash.”

• Accrual

• Deferred

• Periodic

• Variable

Extraordinary items are reported separately from ordinary operating income.

• True

• False

Which of the following is a non-current asset?

• Accounts receivable

• Prepaid rent Prepaid rent (over 1 year)

Which of the following is a contra asset account?

• Retained earnings

• Accumulated depreciation

• Bonds payable

• Share capital

Which term means “obligations payable within one year”?

• Current liabilities

• Non-current liabilities

• Current assets

• Retained earnings