WorksheetsS3 Accounts - Basic Income Statements
Total questions: 21
Worksheet time: 30mins
Gross profit is calculated by...
Sales Revenue - Total Costs
Sales Revenue + Variable Costs
Sales Revenue - Cost of Sales
Revenue - Fixed Costs
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate profit for the year
Which of the following means money received?
net loss
net gain
insurance
income
Which of the following means money spent?
income
expense
net income
gross income
Find the term to match the meaning below:
Money the business receives from customers from selling their goods and services
Gross profit
Sales revenue
Sales returns
Warehouse expenses
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)
Sales returns
Purchase returns
Carriage in
Warehouse expenses
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 = ?)
Opening inventory
Net sales
Cost of sales
Gross profit
Find the term to match the meaning below:
Inventory carried forward from the previous accounting period
Opening Inventory
Purchases
Closing Inventory
Carriage In
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
Carriage in
Carriage way
Carriage out
Carriage car
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)
Carriage in
Purchase returns
Sales returns
Carriage out
The other items of income the business has received during the accounting year from sources other than buying and selling goods
Other income
Expenses
Sales revenue
Purchases
Which is NOT an example of an item under "Expenses" heading on an Income Statement?
Advertising
Factory Rent
Closing Inventory
Wages
From Gourock Garden Centre's Income Statement, what is the figure for Gross Profit (Box A)?
£125,000
£275,000
£90,000
£200,000
What is the main reason why Income Statements are produced?
To allow a business to work out if they have made a profit or loss for the year
Because the business has made over £10,000 this year
To ensure a business does not go into debt next year
It is illegal to run a business without producing an income statement each month
How frequently is an Income Statement normally produced?
Each week
Each month
Each year
Each decade
Where does the following item appear?
Carriage Out
Income Statement - Gross Profit Section
Income Statement - Expenses
Income Statement - Other Income
Statement of Financial Position
Where does the following item appear?
Employee Wages
Income Statement - Gross Profit Section
Income Statement - Expenses
Income Statement - Other Income
Statement of Financial Position
Where does the following item appear?
Heat and Lighting
Income Statement - Gross Profit Section
Income Statement - Expenses
Income Statement - Other Income
Statement of Financial Position
Where does the following item appear?
Rent
Income Statement - Gross Profit Section
Income Statement - Expenses
Income Statement - Other Income
Statement of Financial Position
Where does the following item appear?
Discount Received
Income Statement - Gross Profit Section
Income Statement - Expenses
Income Statement - Other Income
Statement of Financial Position
