Cash Vs Accrual Accounting and Income Statement

Money spent

• income
• expense
• net income
• gross income

money received

• net loss
• net gain
• insurance
• income

when expenses are greater than income

• expense
• net loss
• net income
• net gain

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent

How do you calculate gross profit?

• Sales - COGS
• Sales - NP
• COGS - Expenses
• COGS - NP

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

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

• 800

• 500

• 700

• 300

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

• 800

• 500

• 700

• 300

Net Profit = 500

Revenue = 2000

Expenses = 1000

Cost of Goods Sold = ?

• 1500

• 1000

• 3000

• 500

Which of the following is not a type of revenue?

• Sales
• Commission
• Service Fee
• Rent paid