Profit and Loss Quiz

Profit or Loss is computed by subtracting cost / expenses from –

• income/revenue

• sales discount

• sales

• operating expenses

Sales is an account title used to describe goods or merchandise sold by a business. What nature of business uses Sales?

• Servicing

• Barber Shop

• Merchandising

• Both Servicing and Merchandising

Irene sells fashion bags online. She gets each bag for P 150.00 from a local supplier. She then adds P 100.00 as mark-up for each bag. How much is the selling price of each bag?

• P 200.00

• P 250.00

• P 300.00

A merchandising business earns through –

• rendering services

• lending money

• donating products

• buys and sells goods

It is a tool that allows managers to make educated estimates on revenue and costs of the business in order to cope up with uncertainties of the future –

• estimating

• guessing

• forecasting

• benchmarking

Which of the following businesses use Service Income in recording revenues?

• Beauty Salon

• Sari-sari store

• Movie House

• Hardware

It refers to the amount of merchandise or goods sold by the business for a given period of time.

• Operating Expense

• Cost of Goods Sold

• Deductions

• Sales

Aling Coring sold 5 pieces of rugs. She bought the rugs for 20 pesos and sold it for 35 pesos. How much is the total cost of goods sold?

• P 80.00

• P 90.00

• P 100.00

• P 110.00

Freight-in refers to the amount paid to transfer goods or merchandise purchased from the _________.

• buyer to the supplier

• supplier to the buyer

• buyer to buyer

• supplier to supplier

The costs incurred through payment of utilities such as water, electricity, internet connection is considered as –

• costs

• purchases

• operating expenses

• personal expense of the owner