Business Math- Ch. 1 Test A

A business's report card is a income statement.

• True

• False

What is Gross profit less expenses?

• Net profit

• Net sales

• Cost of Goods Sold

• Balance Sheet

What is income from sales less any returns or allowances?

• Cost of Goods Sold

• Net Profit

• Net Sales

• Operating Expenses

What is expenses less gross profit?

• Net Loss

• Operating Expenses

• Balance Sheet

• Net Profit

What is the final product of the Income Statement?

• Current Assets

• Owner's Equity

• Net Income

• Revenue

What is utilities, employee wages, taxes, and other expenses incurred by the business called?

• Cost of Goods Sold

• Net Sales

• Operating Expenses

• Gross Loss

The amount a business pays for the merchandise it sells is called what?

• Cost of Goods Sold

• Net Loss

• Operating Expenses

• Net Sales

What is Net Sales less Cost of Goods Sold?

• Income Statement

• Net Sales

• Net Profit

• Gross Profit

Find the missing information,

Beginning Inventory: $14,320

Merchandise Purchases: $7,880

Goods Available for Sale: $____

Find the missing information.

Sales: $132,600

Returns and allowances: $5,280

Net Sales: $______