A2_Revenue Quiz

Which one of the following is revenue for a travel agent?

• Rent of the shop

• Staff wages

• Cost of the travel brochures

• Sales of holidays

Answer explanation

Revenue for a travel agent comes from the sales of holidays, as this represents the income generated from their services. Other options like rent, wages, and brochure costs are expenses, not revenue.

Work out the revenue for the following businesses: A shoe shop sells 100 pairs of shoes at £20 each.

Evaluate responses using AI:

OFF

Answer explanation

To calculate revenue, multiply the number of pairs sold by the price per pair. Here, 100 pairs at £20 each results in 100 x 20 = £2000. Therefore, the revenue is £2000.

Work out the revenue for the following businesses: A fish and chip shop sells 300 lots of fish and chips at £3.50 each.

Evaluate responses using AI:

OFF

Answer explanation

To find the revenue, multiply the number of lots sold (300) by the price per lot (£3.50). So, 300 x 3.50 = £1050. The revenue for the fish and chip shop is £1050.

Work out the revenue for the following businesses: A hairdresser completes 20 haircuts at £15 each and sells 10 bottles of shampoo at £3 each.

Evaluate responses using AI:

OFF

Answer explanation

The revenue from haircuts is 20 x £15 = £300. The revenue from shampoo is 10 x £3 = £30. Total revenue = £300 + £30 = £330.

Work out the revenue for the following businesses: A travel agent sells 10 holidays abroad for £450 each and 20 UK holidays at £250 each.

Evaluate responses using AI:

OFF

Answer explanation

Revenue from holidays abroad: 10 x £450 = £4500. Revenue from UK holidays: 20 x £250 = £5000. Total revenue = £4500 + £5000 = £9500.

What is the term for money generated from normal business operations?

Answer explanation

The term for money generated from normal business operations is 'Revenue'. It represents the income a company earns from its core activities, such as sales of goods or services.

What is the term for income from renting out a property?

Answer explanation

The term for income generated from renting out a property is 'Rental Income'. This refers specifically to the earnings received by landlords from tenants in exchange for the use of their property.

What is the term for number of sales multiplied by price per unit?

Answer explanation

The term for the number of sales multiplied by the price per unit is 'Sales Revenue'. This represents the total income generated from sales before any expenses are deducted.

What is the term for money the business pays out?

Answer explanation

The term for money a business pays out is 'expenses'. Expenses include costs incurred in the operation of the business, such as salaries, rent, and utilities.

What is the term for money spent to purchase property, equipment, land?

Answer explanation

The term for money spent to purchase property, equipment, or land is 'Capital Expenditure'. This refers to funds used by a company to acquire or upgrade physical assets.