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Gross and net profit practice

Quiz by Bernice W. Broussard

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15 questions
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  • Q1

    What does the net profit margin tell us?

    How effectively a business turns sales into profits

    How effectively a business turns costs of goods sold into profits

    How effectively a business turns costs into profits

    How effectively a business turns operating expenses into profits

    30s
  • Q2

    Revenue = $100,000

    Cost of goods sold = $50,000

    Other expenses = $25,000

    What is the gross profit?

    $50,000

    $100,000

    $75,000

    $25,000

    30s
  • Q3

    What does the net profit margin tell us?

    The cash inflows and outflows

    How many staff are employed

    What type of ownershipship the business has

    How efficiently a business is run

    30s
  • Q4

    Why might the gross profit margin go up?

    Operating (other) expenses have increased

    Operating (other) expenses have decreased

    Cost of goods sold have increased

    Cost of goods sold have decreased

    30s
  • Q5

    A fall in gross profit margin might suggest_____________.

    that suppliers are charging lower prices

    that operating (other) expenses have increased

    that the business is charging customers higher prices

    that suppliers are charging higher prices

    30s
  • Q6

    Revenue = $200,000

    Cost of goods sold = $160,000

    Operating (other expenses) = $20,000

    What is the total net profit?

    $10,000

    $20,000

    $90,000

    $40,000

    30s
  • Q7

    Revenue = $80,000

    Cost of goods sold = $30,000

    Operating (other expenses) = $10,000

    What is the total net profit?

    $70,000

    $40,000

    50,000

    $65,000

    30s
  • Q8

    Revenue = $200,000

    Cost of goods sold = $160,000

    Operating (other expenses) = $20,000

    What is the total gross profit?

    $40,000

    $20,000

    $65,000

    $180,000

    30s
  • Q9

    What will impact the gross profit margin?

    Sales price charged remaining the same

    Decrease in operating (other) expenses

    Increase in operating (other) expenses

    Cost of goods sold increase

    30s
  • Q10

    Gross profit is the difference between _____________.

    Sales revenue and other expenses

    Sales revenue and fixed costs

    Sales revenue and cost  of cost of goods sold

    Sales revenue and total costs

    30s
  • Q11

    Revenue = $50,000

    Cost of goods sold = $25,000

    Other expenses = $5,000

    What is the total net profit?

    $30,000

    $20,000

    $10,000

    $25,000

    30s
  • Q12

    Revenue = $100,000

    Cost of goods sold = $50,000

    Other expenses = $40,000

    What is the gross profit margin?

    50%

    85%

    10%

    35%

    30s
  • Q13

    What is the net profit margin formula?

    Net profit /  other expenses x 100

    Net profit / Total revenue x 100

    Gross profit  / Total revenue x 100

    Net profit / Cost of goods sold x 100

    30s
  • Q14

    What is the gross profit margin formula?

    Gross profit / Total revenue x 100

    Total revenue / Gross profit x 100

    Net profit / Total revenue x 100

    Cost of goods sold / Total revenue x 100

    30s
  • Q15

    Net profit = $100,000

    Cost of goods sold = $50,000

    Total sales revenue = $300,000

    What is the net profit margin?

    33.3%

    16.7%

    20%

    66.6%

    30s

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