Calculations:

• How is gross profit calculated?

  Revenue - COGS
• What is profit before tax?

  Operating Profit - Interest Expense
• What is the formula for calculating percentage change?

  \text{Percentage change} = \frac{\text{New value} - \text{Original value}}{\text{Original value}} \times 100</latex>
• Revenue is calculated as price per unit multiplied by the number of units sold
• Operating expenses include costs such as rent, salaries, and utilities
• Net profit is the final profit after deducting all expenses and taxes
• To calculate percentage change, you divide the difference between the new and original values by the original value and multiply by 100.

  True
• The gross profit margin indicates how efficiently a company manages its production costs
• Match the financial term with its definition:

  Revenue ↔️ Total income from sales

  Gross Profit ↔️ Revenue minus COGS

  Operating Expenses ↔️ Costs excluding COGS

  Net Profit ↔️ Profit after all deductions
• What is the owner's stake in the business referred to as?

  Owner's Equity
• Gross Profit is calculated as Revenue minus Cost of Goods Sold
• Operating expenses include direct costs associated with producing goods or services.

  False
• The net profit margin indicates a company's overall efficiency after all expenses and taxes are accounted for.

  True
• Order the three main sections of a cash flow statement:

  1️⃣ Operating activities

  2️⃣ Investing activities

  3️⃣ Financing activities
• What is the formula for calculating the break-even point in units?

  $\frac{\text{Fixed Costs}}{\text{Selling Price - Variable Costs}}$
• What is the formula for calculating ROI?

  $\frac{\text{Net Profit}}{\text{Cost of Investment}} \times 100$
• The formula for calculating ROI is: \frac{\text{Net Profit}}{\text{Cost of Investment}} \times 100</latex>
• What does the ROI formula measure?

  Profitability of an investment
• An investment with a 20% ROI means it generated a 20% return on the original investment.


  True
• What is the formula for Operating Profit?

  Gross Profit - Operating Expenses
• How is Net Profit calculated?

  Profit Before Tax - Taxes
• Gross Profit is calculated as Revenue minus COGS
• Operating Profit is Gross Profit less Operating Expenses.

  True
• The formula for calculating percentage change is: \frac{\text{New value} - \text{Original value}}{\text{Original value}} \times 100</latex>
• What key financial terms are needed to calculate profit and loss?

  Revenue, COGS, Expenses
• How is Gross Profit calculated?

  Revenue - COGS
• How is Profit Before Tax calculated?

  Operating Profit - Interest Expense
• What is the formula for calculating gross profit margin?

  \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100</latex>
• Understanding financial terms helps determine a business's overall profitability.


  True
• What does a gross profit margin of 40% indicate?

  40% of revenue retained
• What does a net profit margin of 11.2% indicate?

  11.2% of revenue retained
• The break-even point is the level of sales where total revenue equals total costs.
• Return on Investment (ROI) is a measure of the profitability of an investment.
• Net profit is calculated by subtracting total expenses from revenue.


  True
• What is revenue defined as in business terms?

  Total income from sales
• What are operating expenses excluding COGS?

  Costs to run the business
• How is net profit calculated?

  Profit Before Tax - Taxes
• If a product's price increased from $10 to $12, what is the percentage change?

  20%
• The cost of goods sold (COGS) includes all operating expenses of a business.

  False
• What is operating profit calculated as?

  Gross profit minus operating expenses