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WorksheetsUnit 3 LOF
Total questions: 15
Worksheet time: 11mins
The money a company earns from selling its goods and services to customers is known as
Sales revenue
Cost of goods sold
Inventory
Gross profit
This includes all of the costs and expenses directly related to the production of goods. It excludes indirect costs such as overhead and sales & marketing. This is deducted from revenues (sales) in order to calculate gross profit.
Sales revenue
Cost of goods sold
Inventory
Gross profit
The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Sales revenue
Cost of goods sold
Inventory
Gross profit
Gross profit is calculated by which formula?
subtracting the revenue (sales) made from the cost of goods
subtracting the cost of goods sold from the revenue (sales)
multiplying revenue by sales price
dividing revenue by sales price
This is the term for the goods available for sale and raw materials used to produce goods available for sale. This represents one of the most important assets of a business because the turnover of this represents one of the primary sources of revenue generation.
Sales revenue
Cost of goods sold
Inventory
Gross profit
Once a vehicle or a piece of equipment has been used it becomes second hand and loses value - this business term is called what?
Net profit
Inventory
Expenses
Depreciation
Once Gross profit has been calculated you then deduct all the business expenses from this, you then end up with your final figure which is known as?
(a)
Historic value - residual value / expected life
What's the name of this formula?
Straight line depreciation
Historic value formula
The cost of an asset when it was first purchased
Reducing balance
If a business has an excellent Gross Profit figure, however when the Net profit is worked out it hardly leaves any profit, what could a business do?
Increase prices
Change utility suppliers to get a better deal
Reduce marketing and advertising expenses
Review staff requirements
All of these things
Everything a business owns = assets
Everything that a business owes = liabilities True or false?
True
False
Tangible assets are untouchable? Such as patents, goodwill, trademarks, logo, branding
True
False
Click all of the tangible assets
Premises
Branding
Vehicles
Fixtures and fittings (ie furniture etc)
A non-current asset is something that the business owns that is long term such as ... tick all that apply
Cash
Patents
Land
Buildings
Current assets are known as 'liquid assets' why?
They stay with the business for more than a year
They're runny like hunny
They usually stay within the business for less than a year
They make you go to the toilet
A business has a gross profit margin of 66% what does this mean?
It is in debt and has to pay 34% of profits to the bank
The business has made £66 in profit
34% of the profits will go to shareholders
For every £1 made in sales the business makes 66p in profit
