Is calculated by deducting all expenses from gross profit.

How do you calculate gross profit?

Total Revenue - Total COGS = Gross Profit

What is gross profit?

The money made when revenue is greater than the cost of sales

What is depreciation?

The fall in value of a fixed asset over time

Cost of producing or buying in goods that a business will actually sell

Anything a business owns that has value, whether tangible or intangible

What is the accrual basis of accounting?

Accounting method of recording income & expenses when they ACTUALLY occur

What is a Profit & Loss Statement

A financial report that shows what was spent & earned over a given period

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Y7 Financial Literacy

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Questions 10

Answers

1
What is net profit?
An expense
A holy man who like to use fishing nets instead of fishing rods
Is calculated by deducting all expenses from gross profit.
A liability
2
How do you calculate gross profit?
Total Operating Expenses + Total Non Operating Expenses = Gross Profit
The sum of all Operating Expenses = Gross Profit
Total Revenue - Total Non Operating Expenses = Gross Profit
Total Revenue - Total COGS = Gross Profit
3
What is gross profit?
A disgusting profit
The money made when revenue is greater than the cost of sales
An expense a business incurs through its normal business operations
An accounting method
4
What is depreciation?
The amount of insurance a business pays on their vehicles
The cost of replacing a building that is damaged by fire
The business owner's personal expenses
The fall in value of a fixed asset over time
5
Is your Rent Paid
A Cost of Sales
A non-operating expense
An operating expense
An Accrual Basis
6
Cost of Sales is
The tax a business must pay
An accounting period
Cost of producing or buying in goods that a business will actually sell
The money left over when selling an asset
7
An asset is
Anything a business owns that has value, whether tangible or intangible
An amount of money a business owes to someone
An amount of money a customer owes to a business
Money received for goods and services
8
What is the accrual basis of accounting?
A brutal method of accounting
Accounting method of recording income & expenses when they ACTUALLY occur
A liability
An asset
9
What is a Profit & Loss Statement
A statement you make to the media when your business goes insolvent
A financial report that shows what was spent & earned over a given period
A legal obligation
A financial report that shows the value of all assets and liabilities
10
What is another name for the Profit & Loss Statment
The Liability Statement
The Income Statement
The Asset Statement
The Expense Statement

Y7 Financial Literacy Flashcards | StudBud