Determination of Net Profit And Loss - SS1 Accounting Past Questions and Answers - page 1
1
What is deducted from the revenue to calculate gross profit in a profit and loss account?
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A
Operating expenses
B
Cost of goods sold
C
Other income and expenses
2
What is operating profit in a profit and loss account?
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A
Total revenue minus total expenses
B
Gross profit minus operating expenses
C
Total expenses minus total revenue
3
What are other income and expenses in a profit and loss account?
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A
The direct costs of producing a company's products or services
B
The costs incurred by a company to operate its business
C
The non-operating items that affect a company's profit or loss
4
How is net profit or loss calculated in a profit and loss account?
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A
Revenue minus gross profit
B
Gross profit minus operating expenses
C
Revenue minus total expenses
5
What does a positive net profit indicate in a profit and loss account?
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A
The company made a loss during the period
B
The company made a profit during the period
C
The revenue and expenses were equal during
6
What is the purpose of calculating net profit or loss in a profit and loss account?
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7
How can a company improve its net profit in a profit and loss account?
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