6. State the formula to calculate profit and/or loss.

Profit is calculated as revenue minus total costs.Group of answer choicestruefalse PreviousNext

Identify the different names given to the income statement.Define each of the following terms and, where relevant, write down the mathematical equation that would help in calculating the figure.SalesCost of goods soldGross profitNet profitCalculate the cost of goods sold (COGS), given the following information:  $Sales 700 000Stock (opening) 100 000Purchases of stock 400 000Closing stock 50 000Using the figures from question 3, calculate gross profit.Using your workings from questions 3 and 4, calculate the value of net profit (or loss) if expenses for the period totalled $80 000.Anita Toparis owns and operates Petal’s Florist. Last year Anita had a sales revenue of $285 000. Her cost of goods sold totalled $115 000. Her operating expenses were: electricity $5000, advertising $11 000, interest charges $5000, salaries $62 000 and rent $25 000. Construct an income statement (statement of financial performance) for Anita and tell her whether she has made a net profit.Distinguish between selling, administrative and financial expenses, giving examples for each.Explain how an income statement can provide useful information to a business and its stakeholders.

Revenue is calculated as the number of units sold multiplied by the profit generated per unit.Group of answer choicestruefalse PreviousNext

Select the correct answerA man bought three articles for ₹6,000 each. He sold the articles respectively at 15% profit, 12% profit and 15% loss. The total percentage profit/loss he earned is?Options3% loss4% profit4% lossNo profit no loss

The statement summarizes profit (or loss), costs, and expenses over a specific period, which may be a week, a month, or a year.