Question

1. Which line item is not an expense?

   	A.	Sales and Marketing
   	B.	General and Administrative
   	C.	Property, Plant, and Equipment
   	D.	Training and Professional Development

2. Which financial report most used by nonfinancial managers.

3. 	A.	Balance Sheet
   	B.	Cash Flow Statement
   	C.	Income Statement
   	D.	Statement of Retained Earnings

4. What are the different names for the income statement? Select all that apply:

   	A.	Profit and Loss Statement
   	B.	Gross Profit and Loss Statement
   	C.	Net Margin Statement
   	D.	Statement of income and expenses

5. Gross Profit Margin is calculated as

   	A.	Revenues plus cost of sales
   	B.	Difference between sales discounts and sales expenses
   	C.	Difference between sales and cost of sales (aka gross profit) divided by sales
   	D.	Revenues less cost of sales

6. Net Profit Margin is calculated as

   	A.	Revenues plus cost of sales
   	B.	Difference between sales discounts and sales expenses
   	C.	Difference between sales and all costs/expenses divided by sales
   	D.	Revenues less cost of sales

7. Which item is not depreciable?

   	A.	Land
   	B.	Furniture
   	C.	Vehicles
   	D.	Manufacturing Machinery

8. Which cost does not represent cost of sales?

   	A.	Direct Labor
   	B.	Raw Materials
   	C.	Commissions
   	D.	Office Supplies

9. Sales of services are called

   	A.	Earnings
   	B.	Cost of Goods Sold
   	C.	Revenues
   	D.	Sales Discounts

10. What is the result of net loss or net income allocated to each share of stock?

    	A.	Earnings Per Share
    	B.	Net Margin
    	C.	Gross Profit
    	D.	Earnings Before Interest, Taxes, Depreciation, and Amortizations

Answer 1

1. Which line item is not an expense?

Ans: C. Property, Plant, and Equipment

  This not expense. This is fixed asset.

  2. Which financial report most used by nonfinancial managers.

Ans: B cash flow stateme

Non financial managers uses Cash flow statement as it incorporates both balance sheet and profit and loss statement. It provides information on cash basis.        

3. What are the different names for the income statement? Select all that apply:

                Ans A.   Profit and Loss Statement   & D.                Statement of income and expenses

Income statement also referred as profit and loss account profit and loss statement (P&L), statement of profit or loss, Statement of income and expenses, revenue statement, statement of financial performance, statement of earnings, operating statement.

4.            Gross Profit Margin is calculated as

Ans: C.            Difference between sales and cost of sales (aka gross profit) divided by sales

Gross profit is calculated as (sales- cost of sales) and we divide this by sales to get gross profit margin.

Gross profit margin =((sales-cost of sales)/sales)*100

5.            Net Profit Margin is calculated as

Ans: C.            Difference between sales and all costs/expenses divided by sales

Net profit margin = (net profit/sales)*100

6.            Which item is not depreciable?

Ans: A.            Land

          Land is not depreciated as it is considered that it has infinite useful life

7.            Which cost does not represent cost of sales?

                Ans D.   Office Supplies

Office supplies does not represent cost of sales as it is not direct costof producing the goods. However it is operating cost.

8.            Sales of services are called

                Ans C. Revenue

Sales of services are called revenue.

               

9.            What is the result of net loss or net income allocated to each share of stock?

                Ans A.   Earnings Per Share

Earning per shares (EPS) is company's net profit or net loss divided by the number of common shares it has outstanding.