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Income statement

Total questions: 12

Worksheet time: 8mins

Name
Class
Date
1.

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

a)

True

b)

False

2.
A Net Profit occurs if:
a)
Gross Profit is greater than expenses
b)
Expenses greater than Gross Profit
c)
None of the listed choices
3.

Net Profit = 500

Income = 2000

Expenses = 1000

Cost of Goods Sold = ?

a)

1500

b)

1000

c)

3000

d)

500

4.

Total profit made before all remaining expenses have been deducted:

a)

Financial Ratios

b)

Gross Profit

c)

Net income

d)

Operating Statement

5.
A Net Profit occurs if:
a)
Gross Profit is greater than expenses
b)
Expenses greater than Gross Profit
c)
None of the listed choices
6.

Gross profit is calculated by...

a)

Revenue - Total Costs

b)

Revenue + Variable Costs

c)

Revenue - Cost of Sales

d)

Revenue - Fixed Costs

7.

What is the purpose of an income statement?

a)

calculate the bank balance

b)

calculate net assets

c)

calculate sales

d)

calculate net profit

8.
The Income Statement lists a businesses:
a)
Assets and Expenses
b)
Owner's Equity and Revenue
c)
Revenue, cost of goods and Expenses
d)
Expenses and Net Assets
9.
What does NP percentage show you?
a)
measures the profitability of the business
b)
measures your cashflow
c)
measures your bank balance
d)
measures your NP
10.

Depreciation& amortization are:

a)

cash expenses

b)

finance costs

c)

non-cash expenses

d)

taxed income

11.

EBITDA IS

a)

a financial metric that shows the operating profit after ignoring non cash expense

b)

net operating profit

c)

the final stage of profit stages

d)

a financial metric that shows the operating profit before ignoring non cash expense

12.

When a firm has a controlling interest in a subsidiary, the statements of the two firms are consolidated; the earnings of both firms are included in the income statement. In this case, the share (proportion) of the subsidiary’s income not owned by the parent is reported in the parent’s income statement as

a)

the non-controlling interest

b)

net profit

c)

parent shareholders' net profit

d)

equity investment