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Profit & Loss Account

Total questions: 20

Worksheet time: 41mins

Name
Class
Date
1.
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
2.
Which of the following is not a type of revenue?
a)
Sales
b)
Commission
c)
Service Fee
d)
Rent paid
3.
A Net Profit occurs if:
a)
Gross Profit is greater than expenses
b)
Expenses greater than Gross Profit
c)
None of the listed choices
4.
An expense is...
a)
money a business spends on the general operation of business
b)
money the business owes to other organisations and people
c)
money Owed to the Business
d)
None of the above
5.
An income statement is also known as a 'Trading, profit/loss & Appropriation Account'?
a)
False
b)
True
6.
An income statement is
a)
A way of listing sales, cost of goods sold and expenses.
b)
Another word for 'Gross Profit'
c)
Same as the Balance Sheet
d)
None of the above.
7.
If Sales = £100000 Cost of Goods = £25000, the Gross Profit will be:
a)
£75000
b)
£40000
c)
£70000
d)
£80000
8.

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

9.

Gross profit is calculated by...

a)

Revenue - Total Costs

b)

Revenue + Variable Costs

c)

Revenue - Cost of Sales

d)

Revenue - Fixed Costs

10.

Cost of sales is calculated by...

a)

Opening stock + purchases - closing stock

b)

Opening stock + purchases + closing stock

c)

Adding up all of the stock bought during the year

d)

Opening stock - closing stock

11.

When expenses are greater than income?

a)

expense

b)

net loss

c)

net income

d)

net gain

12.

Income = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

a)

800

b)

500

c)

700

d)

300

13.

Income = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

a)

800

b)

500

c)

700

d)

300

14.

The amount of cash moving into and out of a business

a)

Cash Flow

b)

Net Worth

15.

purchasing an asset would be an example of

a)

cash inflow

b)

cash outflow

16.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

a)

Statement of Financial position

b)

Statement of Changes in Equity

c)

Statement of Cash Flows

d)

Income Statement

17.

COGS stands for

a)

cost of goods sales

b)

cost of goods serviced

c)

cost of goods sold

18.

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies.

a)

Statement of Financial Position

b)

Statement of the Comprehensive Income

c)

Statements of Cash Flow

d)

Cost of Goods Sold

19.
Mrs. Amos sold her six flags ticket for $50.00. She bought it for $35.00. What was her profit?
a)
$25.00
b)
$15.00
c)
$85.00
d)
$20.00
20.
When is a business making a profit?
a)
When revenues are higher than costs
b)
When revenues equal costs
c)
When revenues are less than costs