Which financial statement will allow you to determine the gross margin for a retailer or manufacturer?

A.Balance Sheet

B.Income Statement

C.Statement Of Cash Flows

D.Statement Of Stockholders’ Equity

A corporation's working capital is calculated using which amounts?

A.Total Assets and Total Liabilities

B.Total Assets and Current Liabilities

C.Current Assets and Current Liabilities

D.Current Assets and Long term Assets

Which of the following names is NOT associated with the income statement?

A.P & L

B.Statement Of Financial Position

C.Statement Of Operations

D.Depreciation expenses

Amounts earned by a company in its main operating activities are

A.Revenues

B.Gains

C.Other Gains and profits

D.Other Revenue

The income statement line gross profit will appear on which income statement format?

A.Single-step

B.Multiple-step

C.Indirect Method

D.Direct Method

Under the accrual basis of accounting, revenues are recognized in the accounting period in which

A.Cash Is Received

B.Revenues Are Earned

C.Cash Is Paid

D.Cash in not Received

Gross Profit minus Operating Expenses is best defined as

A.Net Income

B.Net Sales

C.Operating Income

D.Operating Expenses

The income statement shows

A.the cash flow of the business

B.the financial performance and the financial position of the business

C.the financial performance of the business

D.the financial position of the business

The gross profit is

A.£10,000,000

B.£1,200,000

C.£1,000,000

D.£1,500,000

The operating profit is

A.£1,500,000

B.£1,000,000

C.£1,050,000

D.£1,200,000

The profit before tax is

A.£1,200,000

B.£1,050,000

C.£350,000

D.£850,000

The profit after tax is

A.£350,000

B.£750,000

C.£250,000

D.£900,000

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