Which of the Following Are True About the Income Statement

Income Statement Quiz

---

Previous lesson:Income Statement: Instance, Format, Explanations
Next lesson:
The Statement of Changes in Owner’south Equity

---

Welcome to our income argument quiz, where you can test your understanding of this key component of the financial statements!

Before you kickoff, I would recommend to time yourself to make sure that yous not only get the questions right but are completing them at the right speed.

Very of import:
The solution sheet on the following page merely shows the solutions and not whether you got each of the questions right or wrong. Then before you start, become yourself a piece of newspaper and a pen. As you’re going through this quiz and selecting your answers, please also write them down on a separate sheet of paper (number the questions 1-10 and put your answers next to them).

One time you’re washed with the quiz
and
writing down your answers, click theCheck Your Answers push at the bottom and yous’ll be taken to our folio of solutions.

Good luck!

This Grade cannot be submitted until the missing fields (labelled below in crimson) accept been filled in
Income Statement Quiz:
Please note that all fields followed past an asterisk must be filled in.
1. Which statement is the first component of the financial statements?*
a) Residuum Sheet b) Cash flow statement c) Income Statement d) Statement of Changes in Equity e) None of the above
2. The income argument is besides known as the __________?*
a) Turn a profit and Loss Argument b) Statement of Basic Income c) Net Income and Expense Statement d) Cash Flow Statement due east) None of the higher up
iii. The income statement’southward principal purpose is to show the __________ of a business organisation.*
a) fiscal position b) financial performance c) cash position d) expenses e) None of the above
4. The income statement is drawn up from the figures in the __________.*
a) Debtors ledger b) Creditors Ledger c) Cash Catamenia Statement d) Trial Balance eastward) None of the to a higher place.
5. Which of the post-obit statements are true?*
a) An income statement usually covers a total year. b) The income statement may be fatigued up for shorter periods, such as one calendar month or three months. c) These shorter periods are used by managers to make internal business concern decisions. d) The period of fourth dimension that is covered by the income statement (and other financial statements) is called the accounting catamenia. e) All of the above.
6. A business has $250,000 income and $60,000 expenses. What is the internet turn a profit?*
a) $310,000 b) $250,000 c) $160,000 d) $190,000 due east) None of the to a higher place.
Questions 7-ten below relate to the income argument for a trading business concern. 7. Which of the post-obit statements are true?*
a) The first section of the income statement for a trading business shows the ownership and selling of goods. b) The first section of the income statement for a trading business shows net turn a profit. c) The beginning section of the income argument for a trading business concern shows the tax expense. d) None of the above.
eight. Which of the post-obit statements are true?*
a) Cost of goods sold is too known equally cost of sales. b) Cost of appurtenances sold is the directly costs of the inventory that we take sold during the year. c) Cost of goods sold is an expense charged confronting sales to work out a gross profit. d) None of the above. e) All of the above.
XYZ Inc. had the following figures in its income statement: Sales $920,000 Cost of Goods Sold $320,000 Gross Turn a profit ________ Other Income $fifty,000 Salaries $220,000 Advertizement $100,000 Hire $80,000 Other Expenses $50,000 Net Profit _________ nine. The gross profit figure is:*
a) $920,000 b) $970,000 c) $600,000 d) $500,000
10. The net profit figure is:*
a) $650,000 b) $150,000 c) $600,000 d) $200,000
Outset Name*
E-Mail Address*
Country*
	Subscribe to Newsletter
Please enter the give-and-take that you come across below.

REMINDER: Remember to note downward all your answers on a slice of newspaperbefore
y’all click the “Check your answers” push above!

Click hither for moreBasic Accounting Quizzes and Questions

Return to the
Income Statement main tutorial

Return to the
Dwelling Folio

Stay upward to appointment with ABfS!



Follow us on Facebook:

---

---

© Copyright 2009-2021 Michael Celender. All Rights Reserved.

Click hither for Privacy Policy.