Understanding Revenue and Costs (8 Economics)

What is the term used for money received by a business from selling goods or services?

• Costs

• Revenue

• Expenses

• Payments

Which of the following is considered a cost for a business?

• Sales revenue

• Customer purchases

• Wages paid to staff

• Cash receipts

What is the purpose of bookkeeping in a business?

• To increase sales

• To record financial transactions

• To hire more staff

• To design marketing strategies

Rohan is starting a small business and needs to keep track of his finances. Which software can he use for bookkeeping?

• Microsoft Word

• MYOB

• Adobe Bookkeeper

• Google Chrome

Ava is setting up her new bakery and needs to ensure she has enough cash in the register to provide change to her customers. What is the term for this initial cash?

• Revenue

• Float

• Profit

• Expense

What is the formula for calculating gross profit?

• Gross profit = sales revenue + cost of materials

• Gross profit = sales revenue − cost of materials

• Gross profit = sales revenue × cost of materials

• Gross profit = sales revenue ÷ cost of materials

What is the purpose of an income statement?

• To track customer preferences

• To determine the business's profit or loss

• To calculate employee salaries

• To manage inventory levels

Which of the following is an example of an operating expense?

• Sales revenue

• Cost of goods sold

• Electricity bill

• Cash receipts

James is running a small business and wants to calculate his net profit. What formula should he use?

• Net profit = gross profit + operating expenses

• Net profit = gross profit − operating expenses

• Net profit = gross profit × operating expenses

• Net profit = gross profit ÷ operating expenses

What does a cash flow statement show?

• The number of employees

• The business's cash inflows and outflows

• The business's marketing strategies

• The business's inventory levels