Income Statement Quiz
10 multiple-choice questions with answers and explanations · 5 easy, 4 medium, 1 hard
Single-step and multi-step income statements: gross profit, operating profit, cost of goods sold and what is — and is not — an expense.
- 1Income Statement Quiz: The Formula for Net IncomeWhich formula gives net income (net profit) for a period?easy
- 2Income Statement: What Comes After Operating Profit?In a multi-step income statement, which item is deducted AFTER operating profit to arrive at profit before tax?medium
- 3Cost of Goods Sold with Purchases Returns and Carriage InwardsOpening inventory is $12,000, purchases $70,000, purchases returns $3,000, carriage inwards $2,000 and closing inventory $15,000. What is cost of goods sold?medium
- 4Income Statement: Which Item Is NOT an Expense?Which of the following is NOT reported as an expense on a company’s income statement?medium
- 5Discount Received and Discount Allowed in the Income StatementIn the income statement of a sole trader, discount RECEIVED from suppliers for prompt payment is:medium
- 6Income Statement: Finding Sales from the Gross Margin and Cost of Goods SoldCost of goods sold is $180,000 and the gross profit margin is 40% of sales. What is sales revenue?hard
- 7Gross Profit CalculationA company has revenue of $80,000 and cost of goods sold of $55,000. What is the gross profit?easy
- 8From Gross Profit to Net ProfitGross profit is $40,000, operating expenses are $15,000, and interest expense is $2,000. Net profit is:easy
- 9The Single-Step Income StatementA single-step income statement differs from a multi-step income statement in that it:easy
- 10US GAAP: Extraordinary ItemsUnder current US GAAP, a gain or loss that is both unusual in nature and infrequent in occurrence is presented as:easy