by Abagail Loy
Understanding the dynamics of profit is essential for any business enthusiast. This quiz will test your knowledge on various aspects of profit, from basic concepts to more intricate details. Whether you’re a seasoned professional or just starting out, these questions will challenge and enlighten you. Let’s see how well you can navigate through the world of profit!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Profit Quiz Questions Overview
1. What is the formula for calculating profit?
Revenue – Expenses
Revenue + Expenses
Revenue x Expenses
Revenue / Expenses
2. Which of the following is a type of profit?
Gross Profit
Net Loss
Total Revenue
Fixed Cost
3. What does ‘net profit’ refer to?
Total revenue
Total expenses
Profit after all expenses
Profit before taxes
4. Which financial statement is used to calculate profit?
Balance Sheet
Cash Flow Statement
Income Statement
Statement of Retained Earnings
5. What is the term for profit before interest and taxes?
Net Profit
Gross Profit
EBIT
Operating Profit
6. Which of the following can increase a company’s profit?
Increasing expenses
Decreasing revenue
Increasing revenue
Increasing taxes
7. What is the profit margin?
Total revenue divided by total expenses
Net profit divided by total revenue
Total expenses divided by net profit
Gross profit divided by total revenue
8. What is the difference between gross profit and net profit?
Gross profit includes taxes, net profit does not
Gross profit is before expenses, net profit is after all expenses
Gross profit is after all expenses, net profit is before expenses
Gross profit and net profit are the same
9. Which of the following is a measure of profitability?
Debt-to-equity ratio
Current ratio
Return on assets (ROA)
Inventory turnover ratio
10. What is the break-even point?
The point where total revenue equals total costs
The point where total revenue equals total profit
The point where total costs equal total profit
The point where total revenue exceeds total costs
11. Which term describes the profit made from selling goods or services before deducting overhead costs?
Net Profit
Gross Profit
Operating Profit
EBITDA
12. What is the term for profit after deducting the cost of goods sold but before deducting operating expenses?
Net Profit
Gross Profit
Operating Profit
EBITDA
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
