Income Statement (P&L) Calculation Quiz

ReachableWilliamsite4446 avatar

Start Quiz

Study Flashcards

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.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

Income Statement Quiz
20 questions

Income Statement Quiz

FinerIntelligence avatar
Income Statement Quiz
5 questions
Company Income Statement Analysis
12 questions
Use Quizgecko on...