1) What must Income statements always start with? a) Title, Document Type, and Year End b) Title, Date, and Document Type c) Document Type, Year End, and Eggs 2) Which Column does Sales Revenue figure start in? a) 1 b) 2 c) 3 d) 4 e) 5 f) 6 3) Should LESS Cost of Sales be underlined? a) YES b) NO 4) Why do we take away our Closing Inventory? a) Because it needs to be accounted for as next years opening inventory. b) Because it is stock that has gone bad at the end of the year. 5) Do we take away Purchases from opening inventory? a) TRUE (LESS Purchases) b) FALSE (ADD PURCHASES) 6) What Profit is from Buying and Selling? a) Profit for the Year b) Gross Profit c) Net Profit 7) Which one of these is NOT an expense? a) Rent b) Electricity c) Wages d) Purchases e) Heating 8) Total Expenses - Gross Profit? a) Profit for the Year b) Gross Profit c) Nae Profit 9) Income statement MUST be produced for legal purposes. a) FALSE b) TRUE 10) What columns are for money £££ a) 1, 2 & 3 b) 4, 5 & 6
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Income Statements S2
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