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Higher Accounting - Income Statement Terminology

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Find the term to match the meaning below:


Money the business receives from customers from selling their goods and services

a)

Gross profit

b)

Sales revenue

c)

Sales returns

d)

Warehouse expenses

2.

Find the term to match the meaning below:


Total value of goods returned to the business for customers (e.g. because the goods sold were faulty)

a)

Sales returns

b)

Purchase returns

c)

Carriage in

d)

Warehouse expenses

3.

Find the term to match the meaning below:


The figure that arises from deducting sales returns from sales revenue (i.e. sales revenue - sales returns = ?)

a)

Opening inventory

b)

Net sales

c)

Cost of sales

d)

Gross profit

4.

Find the term to match the meaning below:


Inventory carried forward from the previous accounting period

a)

Opening Inventory

b)

Purchases

c)

Closing Inventory

d)

Carriage In

5.

Find the term to match the meaning below:


Total value of inventory purchased from suppliers by the business for resale

a)

Purchases

b)

Closing Inventory

c)

Other Income

d)

Expenses

6.

Find the term to match the meaning below:


A charge added to purchases when the supplier delivers inventory to the business's premises. It is sometimes referred to as a delivery charge

a)

Carriage in

b)

Carriage way

c)

Carriage out

d)

Carriage car

7.

Find the term to match the meaning below:


Total value of inventory returned to suppliers by the business, (e.g. when the wrong goods are delivered by the supplier or a greater quantity than ordered is delivered)

a)

Carriage in

b)

Purchase returns

c)

Sales returns

d)

Carriage out

8.

Find the term to match the meaning below:


Inventory unsold at the end of an accounting period. This will also appear as a current asset in the Statement of Financial Position.

a)

Closing inventory

b)

Opening inventory

c)

Purchases

d)

Carriage out

9.

Find the term to match the meaning below:


The costs incurred in storing inventory in a warehouse prior to sale

a)

Warehouse costs

b)

Warehouse expenses

c)

Warehouse revenue

d)

Warehouse application

10.

Find the term to match the meaning below:


The result of subtracting cost of sales from the net sales revenue

a)

Gross profit

b)

Profit for the year

c)

Net sales

d)

Expenses

11.

Find the term to match the meaning below:


Additional costs associated with running the business for the year. These are adjusted to show what should have been paid, and not what has been paid!

a)

Gross Profit

b)

Expenses

c)

Undercosts

d)

Other income

12.

The other items of income the business has received during the accounting year from sources other than buying and selling goods

a)

Other income

b)

Expenses

c)

Sales revenue

d)

Purchases