Level 1
What is profit?
Profit is a business financial gain.
Describe the role of a bookkeeper.
To record day-to-day financial transaction
You bought a bike for $100 and sold it for $300. How much profit did you make?
$200
Contrast accounts payable and accounts receivable. How do they affect the company’s financial position?
Accounts Payable is money owed by the company while Accounts receivable is money owed to the company.
You bought 3 chairs for $500 each. You sold them for $750 each. How much profit did you make?
$750
What is bookkeeping?
Bookkeeping is the process of recording business transactions.
Explain how to calculate profit.
Subtract amount spend from amount made
Your dad bought his motor van for $94,000 and sold it for $500. How much did he lose?
$93,500
Differentiate between account payable clerk and account receivable clerk?
An accounts payable clerk manages the company’s payments to suppliers to ensure that bills are being paid on time, while an accounts receivable clerk handles incoming payments from customers.
A company sells 1000 units of a product for 100 each. The total cost of production is $60,000. What is the total profit?
$40,000
Who is an employee?
An employee is an individual who works for an organization.
Identify the aim of a business.
To make a profit
Jane bought 12 bikes for $3,005 and sold the 12 bikes for $5,000. What is his profit?
$2,505
What is the difference between employee and employer?
An employee is an individual who works for an employer in exchange for compensation. An employer is an individual or organization that hires employees to perform specific tasks.
A store sold a stove for $2,000 and a chair for $3,000. They bought the stove for $1,000 and the chair for $1,500. How much profit did they make from both products?
$2,500
List careers in accounting.
Bookkeeper, accounts clerk, Financial advisor
Explain who is an investor.
A person or organization that gives money to another person expecting them to make a profit.
You bought a purse for $10 and sold it for $30. How much profit did you make?
$20
Compare the ways in which increasing revenues and reducing expenses can help a business attain profit.
Increasing revenues boosts income, while reducing expenses lower costs. Both strategies contribute to higher profit when balanced effectively.
A company sells handmade jewelry. The total revenue from sales is $50,000. The direct cost for producing the jewelry amounts to $20,000. Find the profit
$30,000