# Income Statement (P&L) Calculation Quiz

ReachableWilliamsite4446
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## 6 Questions

### Match the following financial metric with its calculation method:

Gross profit margin = Gross Profit / Revenue Operating profit margin = Operating Profit / Revenue Net profit margin = Net Income / Revenue Interest coverage ratio = EBIT / Interest Expense

### Match the following items with their correct category in the Balance Sheet:

Accounts Payable (Trade Payables) = Current Liabilities Plant Property & Equipment = Fixed Assets Goodwill = Intangible Assets Common Stock = Shareholders Equity

### Match the following financial terms with their definitions:

EBIT = Earnings before Interest and Taxes SG&A = Selling, General & Administrative expenses Cogs = Cost of Goods Sold Amortization = Systematic write-off of the cost of an intangible asset over its useful life

### Match the following financial statement components with their descriptions:

Revenue (Sales) = Total amount of income generated by sales of goods or services Other Income/Expenses = Non-operating gains or losses outside of the regular business activities Total Current Assets = Sum of all short-term assets that are expected to be converted into cash within one year Net Fixed Assets = Value of fixed assets after accounting for accumulated depreciation

### Match the following terms with their correct representation in the Income Statement (P&L):

Depreciation = Operating Expense Interest expense = Subtracted from EBIT to calculate Profit Before Taxes Income Taxes = Deducted from Profit Before Taxes to calculate Net Income Other = Miscellaneous operating expenses not categorized under SG&A or Depreciation

### Match the following financial ratios with their significance in evaluating a company's performance:

Operating profit margin = Efficiency of operations in generating profit before interest and taxes Net profit margin = Overall profitability after accounting for all expenses and taxes Interest coverage ratio = Ability to meet interest obligations with operating income Gross profit margin = Profitability from core business activities before operating expenses

Test your knowledge on calculating various components of an income statement (P&L), including revenue, operating expenses, gross profit, operating profit, and more.

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