Final accounts

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue, cost of goods and Expenses
• Expenses and Net Assets

Which of the following means money spent?

• income

• expense

• net income

• gross income

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

Gross profit is calculated by...

• Revenue - Total Costs

• Revenue + Variable Costs

• Revenue - Cost of Sales

• Revenue - Fixed Costs

Cost of sales is calculated by...

• Opening stock + purchases - closing stock

• Opening stock + purchases + closing stock

• Adding up all of the stock bought during the year

• Opening stock - closing stock

A Net Profit occurs if:

• Gross Profit is greater than expenses
• Expenses greater than Gross Profit
• None of the listed choices

Income = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

• 800

• 500

• 700

• 300

Income = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

• 800

• 500

• 700

• 300

This is what the business owns.

• Assets

• Liablities

• Loans

• Owner's Equity

This is what the business owes.

• Assets

• Liabilities

• Loans

• Owner's Equity