Business studies practice 11.1

The Income Statement lists a businesses:

• Assets and Expenses

• Owner's Equity and Revenue

• Revenue, cost of goods and Expenses

• Expenses and Net Assets

Which of the following is not a type of revenue?

• Sales

• Commission

• Service Fee

• Rent paid

A Net Profit occurs if:

• Gross Profit is greater than expenses

• Incorrect Commission

• Expenses greater than Gross Profit

• Incorrect Service Fee

• None of the listed choices

An expense is…

• money a business spends on the general operation of business

• money the business owes to other organisations and people

• money Owed to the Business

• None of the above

Which of these does a balance sheet show

• How much gross profit a business made

• Its total revenue

• What a business owns and owes

• How much it paid in rent

What period of time does a balance sheet cover?

• One quarter

• One moment in time

• One year

• One tax year

Which of these is a liability?

• Cash in bank

• Money owed to other business (creditors)

• Stock

• Machinery

Gross Profit Refers to

• money remaining after all expenses are paid

• money remaining after taxes have been paid

• Sales less cost of goods sold

• None of the above

How can a business improve the Net Profit Margin?

• Finding a more expensive supplier with better quality

• Reducing the wage bill

• Raising electricity usage

• None of the above

What is a current asset?

• Something a firm owes that must be paid in > 1 year.

• Something a firm owns that can turn into cash in > 1 year.

• Something a firm owns that you can turn into cash <1 year.

• None of the above