Accounting Quiz

What are final accounts?

• Records of a firm's transactions

• Financial statements produced at the end of the financial year

• Income of a business over a period of time

• Cost of producing or buying goods

What is the income statement also known as?

• Financial records

• Profit and loss account

• Net profit

• Gross profit

What is the cost of sales?

• Profit made when revenue is greater than the cost of sales

• Income to a business from the sale of goods or services

• Cost of producing or buying goods actually sold by the business

• Fall in the value of a fixed asset over time

How is net profit calculated?

• Sales revenue - cost of goods sold

• Gross profit + non-trading income - expenses and overheads

• Cost of goods sold x cost of goods

• Gross profit - (taxes + dividends)

What is retained profit?

• Net profit reinvested back into a company after deducting tax and payments to owners

• Fall in the value of a fixed asset over time

• Income to a business from the sale of goods or services

• Cost of producing or buying goods actually sold by the business

How do we calculate cost of goods sold?

• Opening inventories + purchases - closing inventories

• Closing inventories + purchases - opening inventories

• Opening inventories - purchases + closing inventories

Net profit is also known as profit after tax.

• True

• False

Why is cash not the same as profit?

• Cash is tangible and profit is not.

• Because of trade credit.

• They are the same.

Retained profit is the profit ________ deducting taxes and dividends.

• after

• before

Gross profit is Revenue less how much it cost you to make the goods.

• True

• False