Profit And Loss Statement

Question 0

P&L statement may be made up of the following:

Answer 0

Sales 
Cost of goods sold
Gross profit
Sales,general and administrative expenses
Operating Profit
Other income
Earnings before tax (ebt) 
Income tax
Profit after tax

Question 1

The profit and loss statement provides a summary of:

Answer 1

1) Revenue generated by a company through the sale of goods or services
2) summary of the expenses associated with meeting these sales over a period of time.

Question 2

Sales, general and administrative expenses may be made up of the following:

Answer 2

Net of owners salary
Depreciation and non-cash charges
Interest
Rent

Question 3

Gross Profit

Answer 3

Sales
- cost of goods sold
—————————
= gross profit

Question 4

Operating Profit

Answer 4

Gross Profit
- Sales, General & Admin Expense
———————————————
= operating profit

Question 5

Profit after tax

Answer 5

Earnings before tax
- Income Taxes
—————————–
= profit after tax

Question 6

Days Receivable defined as:

Answer 6

Average number of days customers take to pay bills for purchases and services

Question 7

Days receivable are calculated based on:

Answer 7

Sales

Question 8

The formula for Days Receivable is:

Answer 8

Receivables
—————- X Days
Sales

Question 9

Days inventory is defined as:

Answer 9

The average number of days worth of inventory on hand

Question 10

Days inventory is calculated as:

Answer 10

Inventory
————— X Days (use 360)
Cost of goods sold