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WorksheetsBTEC L2 U2 - Profit and Loss
Total questions: 15
Worksheet time: 8mins
Cost of sales are...
The cost of producing a product, otherwise called direct costs
Other costs that are not related to producing the product, otherwise known as indirect costs
Cost that do not change with output
Running costs
Expenses are...
The cost of producing a product, otherwise called direct costs
Other costs that are not related to producing the product, otherwise known as indirect costs
Cost that do not change with output
Running costs
Which of the following costs would be counted in cost of stales?
Rent
Materials
Tax
Wages
Which of the following costs would be considered as expenses?
Rent
Utility bills
Materials
Tax
Expenses can be referred to as 'Overheads'.
True
False
Which of the following formula is correct for working out net profit?
= price x units (output or Sales)
= revenue – cost of sales
= gross profit - expenditure
= Fixed costs + variable costs
Which of the following formula is correct for working out gross profit?
= price x units (output or Sales)
= revenue – cost of sales
= gross profit - expenditure
= Fixed costs + variable costs
Which of the following formula is correct for working out sales revenue?
= price x units (output or Sales)
= revenue – cost of sales
= gross profit - expenditure
= Fixed costs + variable costs
Which three lines of the profit and loss account would make up the trading account?
Sales Revenue, Cost of Sales and Gross Profit
Sales Revenue, Expenses and Gross Profit
Sales Revenue, Cost of Sales and Net Profit
Net Profit, Cost of Sales and Gross Profit
Using this profit and loss account, complete the answer for Gross Profit.
£11,000
£10,000
£30,000
£35,000
Profit and Loss is a planning tool.
True
False
If gross profit was negative, which of the following may be a good ideas?
Increase Marketing
reduce fuel bills
pay cheaper wages
find cheaper materials
If net profit is negative then which of the following may be good ideas?
Increase gross profit
reduce expenses
reduce sales revenue
increase rent
Why would a shareholder be interested in a profit and loss account?
Because they get paid a dividend out of the profits the company makes
It would show them how ethical the business is
It would tell them when the business would breakeven
It would show how much tax they paid
Why would the Government be interested in a profit and loss account?
Because they get paid a dividend out of the profits the company makes
It would show them how ethical the business is
It would tell them when the business would breakeven
It would show how much tax they paid/need to apy
