PROFIT&LOSS FINANCIAL MANAGEMENT SLIDE 11

Question 1

Cost of raw materials =

Answer 1

Purchase of raw materials + opening stock - closing stocks

Question 2

What does a manufacturing account calculate

Answer 2

The costs of goods manufactured

Question 3

Factory overheads includes what

Answer 3

All other costs incurred in manufacturing excluding raw materials and other direct costs

Question 4

Where does a trading account occur in a profit and loss account

Answer 4

Appear at the top of the profit and loss account

Question 5

How to calculate the costs of goods sold in a manufacturing business

Answer 5

Opening stocks of finished goods + costs of good manufactured - closing stock of finished goods

Question 6

How to calculate the costs of goods sold in a store

Answer 6

Opening stock + cost of goods purchased in a period - closing stocks

Question 7

What does PBT stand for

Answer 7

Profit before tax

Question 8

What does PBIT stand for

Answer 8

Profit before interest and tax

Question 9

What does PAT stand for

Answer 9

Profit after tax

Question 10

What is a profit and loss appropriations account a record of

Answer 10

The money paid back to the business owners

Question 11

How to calculate the new retained earnings for the current year in a Profit and loss appropriations account

Answer 11

Add the retained profit to the retained earnings (or revenue reserves) in the balance sheet to the previous year