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WorksheetsAccounting Chapter 8 Income Statement
Total questions: 24
Worksheet time: 14mins
What is the purpose of an income statement?
calculate the bank balance
calculate net assets
calculate sales
calculate net profit
Which of the following means money spent?
income
expense
net income
gross income
Which of the following means money received?
net loss
net gain
insurance
income
Gross profit is calculated by...
Revenue - Total Costs
Revenue + Variable Costs
Revenue - Cost of Sales
Revenue - Fixed Costs
Cost of sales is calculated by...
Opening stock + purchases - closing stock
Opening stock + purchases + closing stock
Adding up all of the stock bought during the year
Opening stock - closing stock
When expenses are greater than income?
expense
net loss
net income
net gain
Total profit made before all remaining expenses have been deducted:
Financial Ratios
Gross Profit
Net income
Operating Statement
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?
Investment Revenues - Interest Recevied
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
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:
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:
Inventory carried forward from the previous accounting period
Opening Inventory
Purchases
Closing Inventory
Carriage In
Find the term to match the meaning below:
Total value of inventory purchased from suppliers by the business for resale
Purchases
Closing Inventory
Other Income
Expenses
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 inward
Carriage away
Carriage outward
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
Find the term to match the meaning below:
Inventory unsold at the end of an accounting period. This will also appear as a current asset in the Statement of Financial Position.
Closing inventory
Opening inventory
Purchases
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
