Interpretation of Financial Statements (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What is another name for the statement of comprehensive income?
What is another name for the statement of comprehensive income?
Profit and loss account
Why is revenue always shown excluding VAT in the statement?
Why is revenue always shown excluding VAT in the statement?
VAT collected belongs to the government
How is gross profit calculated?
How is gross profit calculated?
Revenue - cost of sales
How is operating profit calculated?
How is operating profit calculated?
Gross profit - selling & admin expenses
What do finance costs represent?
What do finance costs represent?
Interest paid on borrowed money
What does the 'bottom line' refer to?
What does the 'bottom line' refer to?
Profit after tax
For a retailer, what would cost of sales include?
For a retailer, what would cost of sales include?
Purchase cost of stock for resale
What characterises administrative expenses?
What characterises administrative expenses?
They remain relatively stable
Why do shareholders use the statement of comprehensive income?
Why do shareholders use the statement of comprehensive income?
To assess profitability and dividends
Why do statements show figures for at least two years?
Why do statements show figures for at least two years?
To identify trends and assess performance