ENTREPRENEURSHIP – FINAL TERM

NAME: ________________________________
Identification
Instruction: Read the statement comprehensively. Identify which of the statements best
described as Fixed Cost, Variable Cost, Operating Expense, and Non-Operating expense.
____________________1. Your business rents a space at CHH building on Friendship Highway
where you pay 25,000 monthly. This is an example of ___.
____________________2. If you own a home, you must pay using electricity. The amount you
pay changes monthly depending on how much you consume. This is an example of a ___.
____________________3. An expense that is not related to your company’s day-to-day
operation.
____________________4. An expense of your business incur in order to keep running your
business.
____________________5. The actual costs of making a product or providing the service.

Compute Expenses, Sales Revenue, and Profits

Transactions for September 2020 were as follows:
Advertising costs paid in cash 2,000
Purchased equipment for 6,000 cash
Paid 1,500 cash for September Store rent
Provided services to customers 7500.
Cash collected from customers 15,000.
1. Identify and calculate total revenue.
2. Identify and calculate total expenses.
3. Compute profits.