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income statemtns

Total questions: 25

Worksheet time: 17mins

Name
Class
Date
1.

Gross profit is calculated by...

a)

Revenue - Total Costs

b)

Revenue + Variable Costs

c)

Revenue - Cost of Sales

d)

Revenue - Fixed Costs

2.

Cost of sales is calculated by...

a)

Opening stock + purchases - closing stock

b)

Opening stock + purchases + closing stock

c)

Adding up all of the stock bought during the year

d)

Opening stock - closing stock

3.

Which of the following are different terms for fixed costs?

a)

Expenses

b)

Expenditure

c)

Overheads

d)

Indirect costs

4.

Which of the following are different terms for variable costs?

a)

Direct costs

b)

Indirect costs

c)

Materials

d)

Cost of sales

5.

How do you calculate net profit?

a)

Gross profit - expenses

b)

Revenue - total costs

c)

Gross profit - variable costs

d)

Revenue - indirect costs

6.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
7.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

8.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

a)

800

b)

500

c)

700

d)

300

9.

Net Profit = 500

Revenue = 2000

Expenses = 1000

Cost of Goods Sold = ?

a)

1500

b)

1000

c)

3000

d)

500

10.

An accounting report that is used to show revenue and expenses is the

a)

Loss and Profit Statement

b)

Reveune and Expenses Statement

c)

The Profit or Loss Statement

d)

The Income Statement

11.

The main purpose of an Income statement is to...

a)

calculate profit or loss

b)

provide information in an informative manner

12.

Which one is right?

a)

Asset = Owner's equity + Liability

b)

Asset = Owner's equity - Liability

c)

Asset + Owner's equity = Liability

d)

Asset + Owner's equity = expense

13.

What is balance sheet?

a)

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

b)

A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss

14.

Mr.W has current assets of $500 and total assets of $1500. ABC has current liabilities of $300 and total liabilities of $800. What is the amount of ABC's owner's equity

a)

200

b)

700

c)

900

d)

800

15.

Which of the following would normally be a current liability?

a)

Note Payable Due In Two Years

b)

Unearned Revenue

16.

The balance sheet heading will specify a

a)

Period Of Time

b)

Point In Time

17.

What is the normal balance for contra asset accounts?

a)

Debit

b)

Credit

18.

What are liabilities?

a)

Money that the business has in stock

b)

Money owed by the business to banks

c)

The amount of money owed to shareholders

19.

What are net assets?

a)

Total assets - total liabilities

b)

Current assets - current liabilities

c)

Money left over after your bills are paid

20.

What is working capital?

a)

Capital available to spend

b)

Capital you use to pay for fixed assets

c)

Funds left over to meet day to day expenses

21.

What are curent assets?

a)

Fixed assets

b)

Liquid assets

c)

Variable assets

22.

What is Shareholders Equity?

a)

The money owed by the business to the shareholders

b)

The money shareholders pay to the business

c)

The amount of profit shareholders receive on their shares

23.

Do assets belong to a business?

a)

Yes

b)

No

24.

Are inventories held by a Business?

a)

Yes

b)

No

25.

Are non-current liabilities

a)

Money owed by the business for less than a year

b)

Money owed by the business for more than a year

c)

Resources that will be used over a period of time