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WorksheetsChapter 8 & 9 Income statement and SOFP
Total questions: 20
Worksheet time: 16mins
Gross profit is calculated by... (choose all the correct answers)
Revenue - cost of sales
Revenue + cost of ales
Selling price of goods - cost of sales
Selling price of goods + cost of sales
Cost of sales is calculated by...
Opening inventory + purchases - closing inventory
Opening inventory + purchases + closing inventory
Adding up all of the inventory bought during the year
Opening inventory - closing inventory
How do you calculate net profit (profit for the year) ? (choose all the correct answers)
Revenue - cost of sales + other income - other expenses
Gross profit + other income - other expenses
Gross profit - revenue
Revenue - net purchases
Revenue = 1000
Cost of Sales = 200
Expenses = 300
Gross Profit = ?
800
500
700
300
Revenue = 1000
Cost of Sales = 200
Expenses = 300
Net Profit = ?
800
500
700
300
Net Profit = 500
Revenue = 2000
Expenses = 1000
Cost of Sales = ?
1500
1000
3000
500
Which of the following is not a type of income?
Sales
Commission
Service Fee
Rent paid
An expense is...
money a business spends on the general operation of business
money the business owes to other organisations and people
money owed to the Business
None of the above
An income statement is
A way of listing sales, cost of goods sold and expenses.
Another word for 'Gross Profit'
Same as the statement of financial position
None of the above.
The section in the income statement that calculates the gross profit is known as:
The appropriation ssection
The trading section
The profit/loss section
None of the above
The account in the income statement that calculates the net profit (profit for the year) is known as:
The appropriation section
The trading section
The profit/loss section
None of the above
What is balance sheet (statement of financial position)?
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.
A Balance sheet is one of a company's core financial sheet that shows their profit and loss.
Which of the following is correct?
Asset = owner's equity + liability
Asset = owner's equity - liability
Asset + owner's equity = liability
Asset + owner's equity = expense
Examples of liabilities include which of the following:
Loans, credit cards, and real property
Loans, mortgage, and credit cards
Loans, art collection, and savings account
Mortgage, credit card, and real property
Which of these is a liability?
Cash in bank
Money owed to other business (creditors)
Stock (inventory)
Machinery
Current liabilities are long term
True
False
A bank loan is normally a
long term (non-current) liability
a current liability
a fixed (non-current) asset
a current asset
Which for the following is not a fixed (non-current) asset?
Land & Buildings
Cash at bank
Furniture
Equipment
Which of the following is not a current asset?
Debtors (Trade receivables)
Stock (Inventory)
Prepaid Expenses
Fittings
