Profit and Loss Quiz

How do you calculate profit?

• Total Revenue - Total Expenses

• Total Revenue + Total Expenses

• Total Revenue x Total Expenses

• Total Revenue / Total Expenses

What is the difference between cash and profit?

• Cash is the money available, profit is the money earned after expenses.

• Cash is the money earned after expenses, profit is the money available.

• Cash and profit are the same.

• Cash is the money borrowed, profit is the money saved.

When is a profit made?

• When total revenue is greater than total expenses.

• When total revenue is less than total expenses.

• When total revenue equals total expenses.

• When total revenue is zero.

When is a loss made?

• When total expenses are greater than total revenue.

• When total expenses are less than total revenue.

• When total expenses equal total revenue.

• When total expenses are zero.

How do you calculate sales revenue?

• Price per unit x Number of units sold

• Price per unit + Number of units sold

• Price per unit - Number of units sold

• Price per unit / Number of units sold

What does cash typically refer to?

• Money in hand and liquid assets

• Total revenue minus total costs

• Financial gain

• Amount spent

What is the formula for calculating profit?

• Total Revenue + Total Costs

• Total Revenue - Total Costs

• Total Costs - Total Revenue

• Total Revenue x Total Costs

What is profit?

• Money in hand

• Liquid assets

• Financial gain - the difference between the amount earned and the amount spent

• Stock that can be sold quickly

What happens when revenue is greater than total costs?

• A) A loss is made

• B) A profit is made

• C) Total costs increase

• D) Revenue decreases

What occurs when total costs are greater than revenue?

• A) A profit is made

• B) Revenue increases

• C) A loss is made

• D) Total costs decrease