Business Prelim review Gr 11

A company had a net income of $50,000 and total revenue of $200,000. What's the net profit margin for this company?

• 20%

• 30%

• 25%

• 35%

What financial statement shows a company's assets, liabilities, and equity at a specific point in time?

• statement of financial position

• statement of comprehensive income

• statement of cashflows

• statement of retained earnings

Which of the following is considered a current asset on a balance sheet?

• Accounts Payable

• Property, Plant, and Equipment

• Inventory

• Long-term debt

What does the "bottom line" of an statement of comprehensive income represent?

• The company's total revenue

• The company's total expenses

• The company's net income or loss

• The company's total assets

Which of the following is not an expense on an income statement?

• Salaries and wages

• Interest income

• Rent

• Advertising costs

What is the formula for calculating net income on an income statement?

• Total Revenue - Total Expenses

• Total Assets - Total Liabilities

• Total Equity - Total Liabilities

• Total Revenue + Total Expenses

How is equity calculated on a balance sheet?

• Liabilities - Assets

• Assets + Liabilities

• Revenues - Expenses

• Assets - Liabilities

Which of the following is considered a long-term liability on a balance sheet?

• Accounts Payable

• Salaries Payable

• Short-term debt

• Bank loan

A company had current asset sof $500,000 & current liabilities $200,000. What's the current ratio for this company?

• 2.5

• 2.0

• 1.5

• 1.0

A company had a gross profit of $100,000 & total revenue of $500,000. What is the gross profit margin for this company?

• 10%

• 20%

• 25%

• 30%