Sales Revenue and Cost of Goods Sold Quiz

How is sales revenue calculated?

• Opening inventory + Purchases - Closing inventory

• Quantity sold x Selling price

• Sales - Cost of goods sold

• Opening inventory - Purchases + Closing inventory

What is the formula for calculating the cost of goods sold?

• Sales - Gross profit

• Quantity sold x Selling price

• Opening inventories + Purchases - Closing inventories

• Sales + Purchases - Closing inventories

If a business sells 1000 jackets at £100 each, what is the total sales revenue?

• £10,000

• £100,000

• £1,000,000

• £50,000

What is the gross profit if the sales are £100,000 and the cost of goods sold is £25,000?

• £50,000

• £75,000

• £25,000

• £100,000

What is gross profit?

• The total sales revenue

• The amount of money left after deducting the cost of goods sold from sales revenue

• The total cost of goods sold

• The opening inventory value

How is gross profit calculated?

• Sales turnover + cost of goods sold

• Sales turnover - cost of goods sold

• Opening inventory - closing inventory

• Purchases + closing inventory

How is net profit calculated according to the statement of comprehensive income?

• Gross profit + expenses + other revenue income

• Gross profit - expenses + other revenue income

• Gross profit - expenses - other revenue income

• Gross profit + expenses - other revenue income

What is considered revenue income in the context of the statement?

• Sales from core business activities

• Interest from the bank

• Cost of goods sold

• Depreciation

What are current assets expected to be used for within a company?

• Long-term investments

• Standard business operations within the current year

• Employee salaries

• Marketing campaigns

Which of the following is NOT considered a current asset?

• Cash in Hand

• Cash in the Bank

• Premises

• Inventories