List the 7 features of an Income Statement.

"If a business shows a steady increase in its revenue then it must be a very successful business."



Explain why this statement is true or false.

You own a flower store that has the following accounts:



Cash

Accounts Payable

Owner's Equity

Supplies

Bank Loan

Equipment

Automobile Automobile Expense

Rent

Accounts Receivable

Revenue (or Sales)

Wages



For each of the following 4 transactions, indicate:

a) which accounts would be affected

b) whether those accounts increase or decrease

c) how much each account changes



#1. You buy $1200 worth of flowers from your supplier and pay cash.



#2. You sell $120 worth of flowers to a customer.



#3. Your delivery truck breaks down and repairs cost $60. You will pay the mechanic later.



#4. You invest $500 of your own money in the company.



(8 marks)

Jenny opens a gift store outside of Canada's Wonderland where she sells necklaces for $10 each. The necklaces cost $4 to make.



a.If she sells 100 necklaces then what is her gross profit?



b. Total expenses to run her store are $240 per week. What is her profit?



(3 marks)