Practice Determine Profit Or Loss (4.3.2) - Mechanics and Terminology of Accounting Systems

Practice: Determine profit or loss

Lesson 4.3.2Mechanics and Terminology of Accounting Systems

Practise this section

10 questions

Flashcard drill
4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is the formula for calculating profit?
Show hintHide hint
Think about how you find the remaining amount after costs.
Question 2.
If a business has no revenue, what can we infer?
Show hintHide hint
Remember how profit is calculated.
3Question 3.
What is the main formula to calculate profit?
- Revenue + Expenses
- Revenue - Expenses
- Expenses - Revenue
Show hintHide hint
Think about what profit represents!
4Question 4.
True or False: A loss occurs when total expenses are less than total revenue.
- True
- False
Show hintHide hint
Remember the definition of loss.
Question 5.
A start-up company has the following figures: Revenue = $100,000, Rent = $24,000, Employee Salaries = $50,000, Marketing = $10,000. Calculate the profit or loss and discuss how this might affect the next fiscal year's planning.
Show hintHide hint
Sum up all costs first!
Question 6.
A retail shop reports the following figures in a financial year: Sales = $150,000, Costs = $200,000. Discuss the strategy a business could employ if faced with a loss of $50,000.
Show hintHide hint
How can the business turn things around?

6 more questions in this section. Enroll free to practise them all.