Income Statement Quiz

What does the cost of sales represent?

• The total amount of revenue

• The total amount the business has paid to create or make available a product or service that has been sold

• The total amount of profit

• The total amount of liabilities

How is gross profit calculated?

• Revenue plus Cost of sales

• Revenue minus Cost of sales

• Cost of sales minus Revenue

• Revenue divided by Cost of sales

Heat and light costs in a business are considered as what?

• Revenue

• Expenses

• Net profit

• Gross profit

Which of the following is an example of an expense in a business?

• Revenue

• Gross profit

• Heat and light

• Net profit

Which of the following is NOT a current asset?

• Inventory

• Trade receivables

• Prepayments

• Vehicles

Which of the following is considered a current asset?

• Buildings

• Trade receivables

• Machinery

• Land

What are prepayments?

• Amounts that the business owes

• Amounts that the business has paid in advance

• Amounts that are liabilities

• Amounts that are revenues

Which of the following is an example of a current asset?

• Inventory

• Vehicles

• Computers

• Land

Which of the following is a characteristic of non-current liabilities?

• Amounts falling due after one year

• Amounts falling due within one year

• Amounts owed to suppliers

• Amounts owed to employees

Equity in a business is the value of the business after subtracting which of the following?

• Total liabilities

• Drawings or dividends taken by the owner(s)

• Total assets

• Operating expenses