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Income Statement

Total questions: 16

Worksheet time: 9mins

Name
Class
Date
1.

Gross profit is calculated by...

a)

Revenue - Expense

b)

Revenue + Expense

c)

Revenue - Liabilities

d)

Revenue + Liabilities

2.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
3.
The Income Statement lists a businesses:
a)
Assets and Expenses
b)
Owner's Equity and Revenue
c)

Revenue and Expenses

d)
Expenses and Net Assets
4.

What is the purpose of an income statement?

a)

calculate the bank balance

b)

calculate net assets

c)

calculate sales

d)

calculate net profit

5.

Which of the following means money spent?

a)

income

b)

expense

c)

net income

d)

gross income

6.

Which of the following means money received?

a)

net loss

b)

net gain

c)

insurance

d)

income

7.

When expenses are greater than income?

a)

expense

b)

net loss

c)

net income

d)

net gain

8.
A Net Profit occurs if:
a)
Gross Profit is greater than expenses
b)
Expenses greater than Gross Profit
c)
None of the listed choices
9.

If total expenses exceed total revenue, a net loss is reported.

a)

True

b)

False

10.
By completing an Income Statement, you can make decisions.  How could you improve sales?
a)
reduce selling prices
b)
reduce the cost price of your product
c)
increase advertising
d)
introduce a new product
11.
How could a business improve net profit?
a)
reduce expenses
b)
increase COGS
c)
reduce sales
d)
increase expenses
12.

If total sales is 20,000 and Total Expenses is 1000, then profit will be:

a)

21000

b)

19000

c)

1000

13.

Which of the following is NOT a section on the Income Statement?

a)

heading

b)

revenue

c)

expense

d)

capital

14.

If there's only ONE revenue account, list it on the...

a)

left

b)

right

15.

If there's THREE revenue accounts, list them on the...

a)

left

b)

right

16.

Which is under the total expenses?

a)

single rule

b)

double rule

c)

potatoes